Tamil Nadu chief minister Jayalalithaa on Wednesday hit out at the Centre's economic policies and reduction in allocation to the state by 20% in the Union Budget.
She slammed the Centre's move to introduce GST and termed it as an attempt to lay hand on commercial tax resources, which form the major portion of revenue to states.
Intervening during the debate on supplementary estimates in the state Assembly, Jayalalithaa said, "even if the Centre enacted the GST bill, it will not last long as there would be a "regime change" at New Delhi in 2014 after the election. We will throw away that Bill".
She pointed out to some of the pro-poor welfare schemes implemented by her government including Amma Canteens, which offer food items at subsidised rates and vegetables at lower prices through farm fresh outlets in a move to tame inflation and help people.
"After making allocations in the Union Budget, the Centre has reduced 20% of the allocations set apart for Tamil Nadu," she charged and accused the Centre of not acting with responsibility.
Wondering what the states could do after spending money and planning its own expenditure based on Centre's allocation of funds under several heads, the Chief Minister said the Centre's budgetary allocations should have credibility.
"Based on such allocations and in the hope that the state would be reimbursed by the Centre, expenditure is being made. But, the Centre has cut 20% of allocations. We are fighting several problems like this", she said.