The planned reforms include means-testing for criminal legal aid for the first time and easing limits for civil legal aid entitlement.

Responsibility for granting criminal legal aid in serious cases could be shifted from the courts to the Scottish Legal Aid Board.

Deputy Justice Minister Hugh Henry said confidence in the system was paramount.

Under the current system awarding criminal legal aid is based on an assessment of an applicant's ability to meet the cost without "undue hardship".

More than �102m was spent on the criminal aid system last year.

We need to be very clear on the purposes of legal aid and about why taxpayers' money is spent Hugh Henry Deputy Justice Minister

There are no fixed eligibility limits and no requirement to pay a contribution to the costs of a case.

It is left to the courts and the Scottish Legal Aid Board to determine how to assess "undue hardship".

Mr Henry said it was important that taxpayers had confidence in the legal aid system.

"Efficient and effective justice services founded on the basic principles of fairness and equality are central to delivering the peaceful, prosperous Scotland we all want to live in," he said.

Disposable income

"But I also believe that we need to be very clear on the purposes of legal aid and about why taxpayers' money is spent and that's what this consultation asks respondents to consider."

For civil legal aid, there is currently a "disposable income limit" - excluding certain living expenses - of �9,570, beyond which no aid is payable.

Those with disposable incomes up to this level are eligible for aid but have to pay a third of the cost.

Ministers are concerned that the upper limit could deter those on moderate incomes from pursuing worthwhile cases due to cost fears.

The amount of civil legal aid granted has been falling for several years.

In 1994, there were 23,750 civil legal aid grants but this total fell to 12,322 in 2004.

'Deserving cases'

And net spending on civil legal aid has fallen from �25.6m in 1997 to �18.6m in 2004.

Under the reforms, those earning above the present limit would become eligible for aid, but would have to pay rising levels of contribution.

Mr Henry said: "We recognise that the upper limit for civil legal aid can appear very arbitrary for those just above that amount.