NEW DELHI,  (Reuters) – The leader of India’s most  populous and poorest state, Uttar Pradesh, came under sharp  criticism from national parties yesterday for spending what  they said was more than $40 million on an anniversary  celebration.

The controversy over the display of opulence to mark 25  years of the Bahujan Samaj Party (BSP) gives further ammunition  to the Congress party-led federal coalition in New Delhi, which  is aggressively campaigning to win over the key state in 2012.

Dislodging strong regional parties is seen as key to  Congress’ ability to push through painful structural economic  and political reforms to modernise Asia’s third largest economy  in the years ahead.

Uttar Pradesh is politically important because it is the  state that sends the most lawmakers to the national parliament  in New Delhi.

Its Chief Minister Mayawati is dubbed the “Queen of Dalits”  for her political clout. Dalits are former untouchables who are  amongst India’s poorest and most deprived people. Uttar Pradesh  is home to about eight percent of the world’s poor.

“(She) mocks the people of the state by her extravagance,”  Congress party spokesman Manish Tewari said. “Her priorities  get very clearly reflected.”

The BSP said the money was from donations by supporters but  has not yet commented on the amount spent on the celebration.

“It is the people showing respect. You can’t stop them from  garlanding anybody,” said Vijay Bahadur Singh, a federal  lawmaker from the BSP.