"It does not behove a person of the stature of Prime Minister to give incorrect facts at a public meeting," Dhumal told a poll rally at Baijnath in Kangra.
Yesterday at a public meeting in Una, Manmohan Singh had alleged that despite all efforts by the Centre, including an increase in funds, the BJP government in the hill state had ignored all development.
"In the last three years, we have hiked the central assistance by 30 per cent. The assistance has gone up from Rs 200 crore to Rs 900 crore during the period," Singh had said.
The Chief Minister refuted the allegation that his government had failed to fully utilise central funds.
The utilisation of central funds was 104 per cent during the past three years, he asserted.
"It was during the first two years of Congress rule in 2006 and 2007 that only 40 per cent of funds were utilised.
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"In the last quarter of 2007-08, the expenditure rose to 72 per cent after the BJP government came to power. The criticism of the state government on this count by Manmohan Singh is wrong and misplaced," Dhumal said.
He said Himachal had witnessed tremendous development during the BJP rule in spite of "discriminatory attitude of the Centre towards the state".
The Centre had stalled projects, curtailed the Industrial package and reduced the quota of foodgrains and kerosene oil, the Chief Minister alleged.
Dhumal said his government had fulfilled all the poll promises to the people in the election manifesto.