Chennai, Oct 30 (IANS): Tamil Nadu Chief Minister J.Jayalalithaa Wednesday alleged that the central government has damaged its fiscal credibility by reducing the amount allocated in the union budget.

She added that the common man is burdened with price rise due to the central government's wrong economic policy.

Jayalalithaa was replying to Panruti P.Ramachandran, deputy leader of the opposition in the assembly, who spoke on the funds to be received from the centre and the price rise.

She said: "The central government should have some credibility."

She said the centre should not alter the budgetary allocations to the states as they chalk out their various schemes based on the allocation figures and in some cases begin work even before the receipt of funds.

Jayalalithaa said the work on some schemes is started based on the belief that the centre would reimburse the amount.

"Unfortunately, the centre has damaged its credibility by slashing 20 percent of the funds allocated in the union budget for Tamil Nadu," Jayalalithaa said.

On the issue of price rise, she said the wrong economic polices of the centre have burdened the common man, while her government is taking steps like setting up subsidised canteens, vegetable shops and selling bottled water at low rates.