NEW DELHI: Tamil Nadu CM J Jayalalithaa slammed UPA for cutting 20% planned expenditure for fiscal 2012-13, arguing the Centre’s support to state plan belied its promise, undermining the credibility of the entire planning and budgeting process.

“I am constraint to observe that, announcing higher plan allocation and subsequently reducing them, not only undermine the credibility of the entire planning and budgeting process, but also adversely affect scheme implementation and state finances,” Jayalalithaa told the Planning Commission .

The no-hold barb against UPA from the Tamil Nadu CM came at a meeting with the Plan panel which agreed at Rs 37,128 crore the annual plan outlay for the state for the current fiscal.

Jayalalithaa assured the Commission that the annual plan target of Rs 37,000 crore proposed by her for 2013-2014 is backed by adequate resources.

But the Plan panel claimed that the Rs 37,128-crore plan size includes the central assistance to the state plan of about Rs. 3,165 crore and in addition another Rs 9,000 crore is likely to flow from the Centre to TN through various Centrally-sponsored schemes.

“Thus, taking all resources, Plan assistance from the Central government to Tamil Nadu is expected to be over Rs 12,000 crore during 2013-14,” said the Commission.

In a stern massage, Jayalalithaa asked the Plan panel not to overstep its advisory and allocational mandate and don an executive role.

Arguing the Centre is thrusting ill-designed schemes upon states, she raised strong objection to "the executive overreach by the Centre and the attempt to insidiously bypass the state governments" through the direct benefit transfer (DBT) scheme.