The Edinburgh club have been irked by the oft-repeated claims that players are poorly rewarded in comparison to other SPL outfits and now chief executive Scott Lindsay has sought to set the record straight.

While insisting Hibs will continue to "live within their means", Lindsay revealed the manager's budget has been increased five times in the past three years and that terms and wages currently being offered by the club are competitive with all but the Old Firm and Capital rivals Hearts.

And Lindsay disclosed that boss Mixu Paatelainen will be allowed to pay higher wages as he reduces the size of his squad as he is currently attempting to do.

In addition, said Lindsay, Hibs have spent almost £2million in the past two years bringing fresh talent to the club in addition to the £5m spent on opening the club's state-of-the-art training centre.

In a newsletter issued to fans attending Saturday's first home game of the season Lindsay said: "Much has been made of the way in which Hibernian goes about its business – our determination to ensure the club remains on a stable financial footing.

"We have been criticised in some quarters for having a 'restrictive wages policy'. Let's be absolutely clear about one thing. We provide a budget for our manager and as at any other club he is asked to operate within that budget.

"Sometimes there are exceptional circumstances. In seeking to support Mixu on his appointment in January, the board agreed to bring a number of players to the club who were not part of the original budget.

"Several more players have been signed in time for the start of the season."

However, that has resulted in the squad being larger than planned in normal circumstances, meaning the annualised cost of the squad was higher than the club would like through the board's conscious decision to support Paatelainen. The manager has signalled he wants to reduce the number of players under his control while continuing to strengthen the squad.

While doing so can involve some element of additional cost, paying off unwanted players who still have some time remaining on their contracts, Lindsay insisted: "While the size of the squad reduces, the budget won't and if that allows the manager to pay higher wages to a smaller number of players then all good and well.

"In any event, the terms and wages being offered by Hibernian are competitive with those being offered by any other club outwith the Old Firm and, of course, by Hearts.

"For the club to continually live beyond its means would be a recipe for disaster. Recent events must reinforce that fact in the minds of everyone. The 'speculate to accumulate' strategy has been so thoroughly discredited within football that it is not an option. However, that does not mean we do not seek to progress or that our spending is in any way static. In the past three years the manager's budget has been increased on five occasions, and we will continue to do all we can to support him.

"The accounts for the financial year just ended will show that our wages to turnover ratio had increased to close to 60 per cent due to a combination of increased expenditure and a fall in turnover because of earlier cup exits than in the previous season."

Lindsay revealed the latest accounts, for the financial year which ended on July 31, will also show around £750,000 was spent on "attracting and retaining" football talent following almost £1m spent in the previous 12 months.

He said: "In two years that's just under £2m, considerably more than most SPL clubs and certainly more than our own club has been able to invest in previous years."

And the chief executive insisted reducing club debt, which has fallen dramatically in recent years, will continue to be a target. He said: "While many feel they see no immediate benefit from debt reduction and view it simply as good housekeeping by the club, there is much more to it.

"Cutting debt reduces our operating costs and frees up money that otherwise would be tied up servicing debt. In other words, cutting debt reduces cost and means that more of our income can be spent on the team this year, next year and every year thereafter.

"It's not just about balancing the books, it is also about freeing up money for the manager."