Post date: Jan 31, 2011 7:28:52 AM
As part of Bihar election campaign, Rahul made a statement; Bihar is misutilizing funds allotted by Central government. In a sharp reaction this statement, Nitish said that Central government is not showing any mercy on Bihar, it is Bihar right to receive funds from Central government. Nitish dares congress to stop funding from central government. In the entire episode Rahul become a educated fool as he does not have any basic idea on federal system in Republic of India. Indian central government collects taxes from all states in the form of excise duty, income taxes, service tax and custom duty etc. Consequently the central government distributes taxes to states based on a formula which varies from state to state according to their conditions. According to formulae, every state gets 25-35% of their contribution of central taxes. The remaining amount 65-75% of taxes spent on PSUs, Defense, Education, Health, Welfare programmes and others programmes by the central government. Rahul, having degree from Harvard University in development economics, he does not have simple information of how Indian federal system works i.e. Central government won’t generate single rupee rather it is income of state governments. The entire episode reminds, late NTR’s popular statement of “ Kendram oka Midhya – Raashtrale Nijam”