Revd David Robertson has criticised the Scottish Government's decision to stop local councils raising Council Tax as the "economics of fairyland" which is damaging local democracy and hampering the poor who rely on public services.
The Dundee-based minister also attacked the earnings of Scotland's civil servants and claimed they hold "far more power" than elected officials.
Currently the SNP run Scottish Government makes local authorities freeze their tax in return for a grant. If councils increase their tax they lose the grant and face a huge funding gap.
Revd David Robertson said: "We are in an era when the old balances and checks that existed in our country are being threatened by an increase in big government, run by parties funded by big corporations who purchase big media, and led by politicians with a Messianic complex.
"Despite the cries of democracy there is an increasing trend towards centralisation whether to Edinburgh, London or Brussels, and the victims in this are local communities and local councils.
"There is no doubt that many of Scotland's cities and councils are in crisis. They are being compelled to make savage cuts in basic services whilst being restrained from cutting others.
"My own city Dundee has to make a budget cut of some £28 million. We all know who will be affected the most. The poor - those who can afford to will go to private gyms, buy their own books and even send their children to private schools.
"The council tax freeze worked well as a temporary populist measure, but to have it as an indefinite policy in a time of austerity is the economics of fairyland."
Revd Robertson added: "Glasgow City Council state they have seven managers with a package of more than £100,000 per annum.. In what world does it make sense to have one tax-funded employee earning more than three-and-a-half times the salary of the Prime Minister or the First Minister?
"And that is the trouble with big government, big corporations and big salaries for a big bureaucracy. Power corrupts and absolute power corrupts absolutely.
"In order to avoid that, we need a return to a more balanced, and localised politics."
A Scottish Government spokesman said: "The Scottish Government has funded the Council Tax freeze to the tune of almost £500million since 2008 to ensure local authorities are able to continue to provide the essential services they are responsible for. Indeed, recent independent research found that the freeze has actually been over-funded.
"We recognise the pressures on budgets across the whole of the public sector, and in households throughout Scotland, which is why it is important to maintain the Council Tax freeze – which has now saved the average Band D household around £1,550 – while we consider ways to replace it, as well as reimbursing local authorities.
"Our Community Empowerment Act gives people more powers to take over land, buildings and services and is a momentous step in our drive to increase participation and local decision making.
"Pay for local government employees is a matter for local authorities, which as independent bodies accountable to their electorates are responsible for managing their own budgets. In those areas in which Scottish Ministers control pay, we are bearing down on pay and bonuses to help ensure that public sector pay in Scotland remains affordable, sustainable and demonstrates value for money. We would expect local authorities to follow a similar policy."