"They have no constitutional right to do this. The move is nothing but an election gimmick. They won't be able to implement it," Mukherjee told PTI.
He accused the Centre of not releasing funds deemed just under a federal structure.
Mukherjee, who also holds the Public Health Engineering portfolio, criticised the Centre for depriving the state of funds.
"We have sent a report to the Centre that the state is not getting funds. The Centre is constitutionally bound to provide money for development of the state," he said.
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"The Centre had stopped giving funds for the past one-and-half months amounting to Rs 1200 crore. We have heard they have released Rs 400 crore, but the money has not reached us yet," he said.
The state was also lacking funds for construction of rural roads under the Pradhan Mantri Gram Sadak Yojana (PMGSY) due to which contractors could not be paid, he said.
"What we demand is our right and are not seeking any dole," he said.
West Bengal Chief Minister Mamata Banerjee has already accused the UPA government of denying funds under the MGNREGA and Sarva Shiksha Abhiyan schemes.