SNP MSP Chic Brodie asks about capital allocation and which sectors will be prioritised.

Mr Swinney says the capital programme takes forward a range of priorities.

The deputy first minister says digital connectivity is key for Scotland. 

Mr Swinney says the substantial investment in health and social care will be warmly welcome around the country.

The finance secretary says if there are choices to be made he would like to hear from the Labour party what the alternatives are.

He says the choice is there for the Labour party for them to decide on the allocation of resources. 

Finance Secretary John Swinney has:

• Ruled out an increase in Scottish income tax when Holyrood gets new financial powers next year.
• Announced a tax rise on many second homes and buy-to-let properties through a Land and Buildings Transaction Tax levy
• Confirmed that the council tax freeze would continue.
• Warned that the Scottish budget was set to continue to reduce in real terms until the end of the decade, as he said it had done since 2010.

Mr Swinney says he has set out in his statement a number of measures of welfare reform mitigation. 

Green MSP Patrick Harvie asks about local government finance and says in the wake of the Paris agreement some people were expecting more dramatic action from the government on climate change.

Mr Swinney says he has valued the cross party support on local government financing. 

He says the Scottish government are continuing to work to combat climate change.

SNP MSP Rod Campbell asks about mental health funding.

Mr Swinney says the funding will support child and adult mental health services and improve primary care. 

Labour MSP Paul Martin says Glasgow City Council will see a budget cut of £120m.

The finance secretary says he has taken a decision that has set the funding floor that will prevent further budget cuts to Glasgow City Council.  

SNP MSP Christina McKelvie asks about funding to prevent violence against women.

Mr Swinney says the government has maintained the level of the equalities budget which will maintain support to end violence against women and girls.   

SNP MSP John Mason raises the issue of the Scottish Rate of Income Tax (SCRIT).

Mr Swinney says if SCRIT had been increased there would be a greater proportionate burden on someone with a low income rather than someone on a higher income.

It is a blunt instrument for Scotland to deploy. 

Labour MSP Ken Macintosh says Mr Swinney did not give a figure for the local government settlement, as its services are the biggest losers.

Mr Macintosh says there is a 6.1% real terms cut to funding for local authorities.

Mr Swinney says the local government revenue support will reduce by £350m, the capital budget will be reduced by £150m temporarily.

He says he has told local government the budget will be lower this year and it will be replaced in later years.

The deputy first minister says the government has to be able to ensure greater impact for its limited resources. 

Scottish Conservative MSP Gavin Brown says the higher education budget is falling and the Scottish Police Authority has a cut of £12m.

Mr Swinney says he said he had protected the higher education research budget.

The deputy first minister says he has protected the resource budget of Police Scotland and he details extra funding the service has received. 

Mr Swinney says the budget for the health service has increased in real terms since 2011 and the SNP will continue that after the next election if it is returned to government.

Labour SNP Iain Gray asks if the deputy first minister has not failed yet again to protect education.

Mr Swinney says the college and higher education budgets have been protected and there are more resources to attack the attainment gap. 

The deputy first minister says he has set out a balanced package. 

SNP MSP Kenneth Gibson warmly welcomes the "very positive statement" from Mr Swinney.

Finance Committee spokesperson Mr Gibson asks when work will begin on site on the Aberdeen city bypass.

Mr Swinney says construction will start in 2016-17.

The deputy first minister says the employment rate is the highest in the UK.

On mental health he says the budget has £50m more for that issue.

Mr Swinney says on the police the real terms increase is being protected.

The finance secretary says because the SCRIT powers are so constrained, he could not raise tax for those on high incomes without raising tax for those on low incomes.