Scottish government costs 'too high', says CBI boss
28 August 2012 Last updated at 10:40 BST
The director of CBI Scotland, Iain McMillan, believed the costs of government in Scotland were "too high" and they needed to come down.
He added that a new approach could mean job losses.
Mr McMillan told BBC Radio Scotland's Good Morning Scotland programme: "But I think that job losses would be far fewer if, for example, there were several years of quite low pay rises in the public sector.
"We are having to go through a very painful adjustment to get the UK economy back on track."