According to a recent report, taxpayer-funded employees earn 30% more, consequently, calls have been made to "close the gap" between public- and private-sector pay.

The state sector enjoyed vastly better pay and benefits packages compared to the rest of the economy, according to the research. Public-sector workers can expect an average pay of £22,417 and for the people employed in the private economy, it is £19,932, as per the figures from the Office for National Statistics for 2009.

The report also revealed that public-sector workers enjoy perks and advantages like better pensions, shorter hours and earlier retirement, as compared to the private industry employees.

According to the report by centre-Right think tank Policy Exchange, private-sector workers work 23% longer, as compared to workers in the state sector. On an hourly basis, public sector worker is paid 30% more than a private-sector worker, report shows.

The state sector has been artificially protected from the recession, warned the Liberal Democrat-Conservative coalition government. Scotland's Finance Minister, John Swinney urged the local councils, health boards and other public bodies to save money.

North-east Conservative MSP Alex Johnstone said, "There seems to be an institutionalized belief in some political parties in Scotland that the public sector is good, while private is bad".