Labour leader Jim Murphy has branded SNP demands for control over all taxes and spending as "foolish" given the crisis facing the oil and gas sector.
Mr Murphy said the nationalists' calls for full fiscal autonomy would leave Scotland "entirely dependent" on the volatile sector, which has been hit by plunging oil prices.
The economic plan - which could be demanded by the nationalists in return for propping up a Labour government at Westminster - does not make sense, Mr Murphy said.
He went on to dismiss the prospect of a coalition with the SNP after the general election, after a poll today showed that 35% of Scots favour the combination at Westminster.
Mr Murphy was speaking in Dundee, where his shadow cabinet was meeting and reaching out to former Labour supporters who voted for independence.
"Too much politics happens in London and Edinburgh, whereas real people's lives are in communities and cities all across Scotland, so I've brought the Scottish Labour Party shadow cabinet here for the first time out of Edinburgh to Dundee," he said.
"This is a city that of course voted Yes in the referendum and it's going to be important in the forthcoming general election, and we want to listen to Dundonians and learn and improve the city together."
He added: "The SNP want to get rid of the Barnett formula, that's a really foolish thing to do and they would rather rely on oil.
"People are celebrating that it's cheaper to fill up your car at the forecourt just now, but if the SNP get their way the economy of Scotland will be entirely dependent on what happens to a fluctuating and limited commodity such as oil, and that doesn't make sense.
"As I said, we're not planning for, not expecting, not wanting a coalition with the SNP. Let's concentrate on getting rid of David Cameron rather than talking about coalitions, and the only way to get rid of David Cameron is a vote for the Labour Party."
Mr Murphy also unveiled Labour's five-point plan for securing economic and cultural success for Dundee.
The city needs to fully exploit the potential of its £100 million digital industry and the planned V&A museum, he said.
He called for the city council to work with the Scottish Government to bring oil industry decommissioning jobs to Dundee and to raise educational attainment.
The leader also underlined the city's need for more affordable and accessible sports facilities.
Mr Murphy said there are "vast" opportunities open to Dundee, once known as the city of jute, jam and journalism.
He said: "Now there's a new emphasis through the growth of the games industry, the transformation of the waterfront and the investments in culture. What's needed is the plan, the purpose and the political will to deliver for Dundee."
SNP MP and depute leader Stewart Hosie said: "Mr Murphy's problem - apart from dismal personal and party poll ratings - is that the people of Scotland clearly disagree with him, because those same polls show they want the vow on home rule to be delivered in full.
"The simple fact is, for all his ludicrous attempts to claim he is not a unionist, Jim Murphy is against full self-government for Scotland, and for as long as that is the case his party face paying a very heavy price."
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