Devolution of taxes is Finance Commission's recommendation, not Centre's: Nitish

Criticising Prime Minister Narendra Modi for his comments at rally in Bhagalpur, Chief Minister Nitish Kumar on Tuesday said the devolution of taxes was a Finance Commission recommendation and not the Centre's choice.

"As per the federal structure of India, there is a provision that tax collected by the state goes into its treasury and the tax collected by the Centre is distributed between the Centre and States," Nitish told the media here.

"Devolution of taxes takes place on finance commission's recommendations; it's not Centre's choice or favor," he added.

Nitish also emphasised on the seven keys of developed Bihar, including the programmes related to educational, health, agricultural development, structural development and basic foundation of Bihar.

He further used this occasion to say that the Prime Minister seems to be tensed with the Sensex fluctuations these days.

He also took it to his Twitter page to say "Modi must have whipped up his figures and data today from the same place he whipped up his special package - thin air."

Prime Minister Modi addressed his final Parivartan rally in Bhagalpur today, where he lashed out against Nitish and accused him of "cheating" people of the state by announcing a package of Rs 2.70 lakh crore.