BUSINESS leaders have branded the Scottish Government's budget plans "inadequate" and criticised the decision to scrap the Glasgow Airport Rail Link.

BUSINESS leaders have branded the Scottish Government's budget plans "inadequate" and criticised the decision to scrap the Glasgow Airport Rail Link.

CBI Scotland warned that the rail link decision, made last month, reflected "troubling shortcomings".

The CBI has put forward its own suggestions to stimulate the economy with changes to the Scottish Government's £35billion draft 2010/11 budget.

Director Iain McMillan said: "The spending plans, as they currently stand, are inadequate.

"A far bolder approach to making savings is required, one which protects rather than cuts important GDP-enhancing investments.

"The unacceptable cancellation of the Glasgow airport rail link project reflects a number of troubling shortcomings in the government's intentions, and we believe the project should be reinstated."

The CBI argued that "piecemeal" spending cuts and the scrapping of major infrastructure projects would be the "wrong approach".

A spokesman for Finance Secretary John Swinney said: "The draft budget is focused on promoting economic recovery and protecting frontline services - in the face of the UK Govern-ment's £500million cut to Scotland's budget.

"The process must operate within a fixed - and declining - settlement from Westminster, and while CBI Scotland propose areas for additional expenditure, unfortunately they make no practical suggestions for how spending could be correspondingly reduced in 2010/11."

Labour's Holyrood leader, Iain Gray MSP, said the SNP had "got it wrong" with the economy.

He said the decision to scrap the rail link cost more than 1000 jobs.

Scottish Conservative finance spokesman Derek Brownlee said: "The SNP cannot carry on pretending that they can spend money which doesn't exist and need to face up to reality."