"When you can't utilise Rs 12,000 crore for different centrally-sponsored schemes how will development happen? The state government has failed on all fronts," alleged Sahay at a media conference here.
Accusing the Arjun Munda government of failing on all fronts, he claimed, "There is no industrial policy and there is no rehabilitation and resettlement policy".
The Congress, he added, has been fighting for the rights of the people, who were "displaced" during the eviction of encroached land last year.
The state government had then said that the anti-encroachment drive was taken up at the directive of the High Court.
"The government has also failed on the law and order front...The recent lathicharge on demonstrations at Keradari (in Hazaribagh district) was condemnable," he alleged.