MSPs said it was difficult to judge if spending gave value for money

Holyrood's finance committee found that spending in this area had risen by 3% since devolution - while the overall budget increased by 33%.

Its report also said that it had been "extremely difficult" to assess whether spending had been properly targeted and given good value for money.

The Scottish Executive said growing the economy remained its top priority.

"We know that the areas of greatest importance to business are education, skills and transport as these are vital in creating the conditions for economic development," said a spokeswoman.

The executive has not given clear reasons why its spending decisions help to promote economic development Des McNulty Committee convener

"These are the areas that received the biggest increases in the spending review last year."

The finance committee carried out a review of spending on economic development across the Scottish budget.

Committee convener Des McNulty said: "Our report shows that the executive has not given clear reasons why its spending decisions help to promote economic development.

"For example, the executive has increased its spending on transport - but a large amount of this money is for concessionary fares.

"While there is no doubt this is a welcome move, it is questionable whether this money helps promote economic development."

He said spending decisions were not assessed or prioritised in areas where ministers claimed they played a vital role in the promotion of economic development.

Economic growth

"This means it has been extremely difficult for the committee to judge whether spending has been properly targeted and has given a good rate of return," said Mr McNulty.

"This is why the committee is recommending that there should be a strengthened national planning framework to give better direction, co-ordination and prioritisation to spending to promote Scotland's economic growth."

The report said that that the amount of money allocated for economic development had risen slower than other parts of the budget since 1999.

Overlapping remits

"This raises questions about whether the resources of the Scottish Executive are being allocated in a way that reflects the executive's commitment that growing the economy is a top priority," said the committee.

MSPs also found that the number of councils and other public agencies, and their overlapping remits, made it more difficult to use resources efficiently.