The plans will reduced the number of organizations to 121, the lowest number since before devolution.

The totals announced yesterday include a reduction of 35 bodies already announced. The reforms are part of the Government’s commitment to delivering more streamlined and effective government, with clearer decision making procedures.

The reforms exceed the Government’s pledge of reducing the number of national public organizations by 25 per cent. Yesterday’s proposals represent at 26 per cent reduction, which will rise of 39 per cent if the abolition of Justice of the Peace Advisory Committees are included.

The First Minister told the Parliament that: "our institutional structures are far too complex for a country and an economy of five million people. The reforms I have announced today reflect this and take a significant step forward in simplifying government, to drive efficiencies and increase productivity.
 
"Our drive for more effective government will, crucially, make it easier and quicker to deal with the public sector. If simpler, more effective government could raise the productivity of Scotland's private sector by just one per cent, the increased benefit to Scotland's economy would be around £800 million.

Finance Secretary John Swinney said: "The health of Scotland's economy underpins all our priorities in Government.

"We are determined to give Scotland a competitive edge; through support for Scottish business; through raising the number of well paid and highly skilled jobs; through improving Scotland's connectivity and through greater support for the third sector.  Creating a more effective public sector focused on creating the right conditions for increased sustainable economic growth is also central to the Government Economic Strategy.”

In response to the First Minister’s statement, Conservative leader Annabel Goldie said: “What we saw here today is just 52 cards being reshuffled, re-dealt and remaining at 52 cards. That is not how we should approach effective government. The real test about whether this ‘bonfire’ was just craftily spun candyfloss or a statement of substance and a real rolling back of the state was whether or not the First Minister could confirm there would be a 26 per cent cut in costs to the taxpayer. Sadly the First Minister didn’t know the answer, or far more likely, was embarrassed to admit the truth.

“The question that every taxpayer wants answered is how many fewer people will be employed and how much money will be saved to the public purse? After today’s statement, we are still none the wiser.”