The finance secretary says Scotland is on track to build 30,000 affordable homes over the course of this Parliament.

The government is committed to building 50,000 new affordable homes during the next Parliament.

Mr Swinney says: "I am delighted to announce that - as the first step towards this - we will be increasing the budget for affordable housing next year by £90 million enabling us to invest around £690 million in housing supply."

Mr Swinney tells the chamber he has protected college funding.

The finance secretary goes on to higher education: "I can confirm today that we will continue to fund our commitment to free tuition."

The government has invested over four billion pounds in the higher education sector over the last four years.  

The finance secretary says the government must raise attainment for all and close the gap that has existed for decades between children in our most and least deprived areas.

This Budget makes provision for that commitment with £33 million investment in attainment programmes in 2016-17, which will support the four-year £100 million Scottish Attainment Challenge, he says.

"We also intend to maintain teacher numbers next year."

The finance secretary says: "A strong and sustainable economy lies at the heart of a successful Scotland."

This Draft Budget provides the resources to deliver this by supporting innovation, investment, internationalisation, and inclusive growth he says.

Mr Swinney says next year the consultation on an alternative to council tax will be published.

He says for the first time, the government are also publishing 5 year forecasts for the devolved taxes.  

These forecasts will aid transparency around the medium-term assessment of Scotland’s devolved public finances.   

Mr Swinney now details the future of Land and Buildings Transaction Tax and the Scottish Landfill Tax.

Mr Swinney now details the Scottish Rate of Income Tax will not vary from the rest of the UK. 

Mr Swinney says the Scottish government aims are made more difficult to achieve by the UK Government’s continued austerity agenda. 

The deputy first minister says by 2020 the Scottish budget will be 12.5 per cent lower in real terms than when the Conservatives came to power.

Even the capital budget will still be more than half-a-billion pounds a year lower in real terms in 2020-21 than it was in 2010-11, he says.

Under the 2012 law, Holyrood will gain a new power over income tax from April 2016. 

Under that plan, the Treasury will deduct from the Scottish block grant a sum equivalent to the product of 10p worth of income tax north of the Border. 

MSPs then have to set a Scottish Rate of Income Tax (SRIT) to fill the gap. 

They can levy more, to raise more cash; they can cut tax, at both the standard and upper rates, and take the hit on public spending; or they can reinstate the 10p rate. 

It is understood that Mr Swinney will opt for the 10p rate. 

Government strategists will be keen to emphasise that a 10p Scottish rate of income tax adds up to no change overall; that the tax bills faced by individuals will not change. 

Image source, PA

The finance secretary says the current financial landscape presents Scotland with a challenge and a choice.

"Scotland can accept these Tory cuts or we can rise to the challenge and choose a Scottish alternative to austerity."

"We choose to rise to the challenge. We choose the Scottish alternative."

The minister says the government has chosen to put reform and growth at the heart of this Budget 

Mr Swinney says the Scottish government can create the foundations for a stronger and more sustainable economy.

"We believe that with a relentless focus on tackling inequality and boosting productivity, we can create the foundations for a stronger and more inclusive economy."

The finance secretary says the realities of the public finances are such that if the Scottish government want to improve our services, it must be prepared to continually reform the way in which it delivers them.  

Brian Taylor
BBC Scotland Political Editor

The finance secretary is under pressure from Labour to mitigate austerity afflicting those who are less well off. 

It is thought he will argue that the best way to help the poor is to ensure that they are included in efforts to grow the economy while emphasising his desire to mitigate, where possible, the impact of welfare cuts.

It is also expected that Mr Swinney will argue that there must be "relentless reform" in the public sector to gain the best value for money, and to ensure that services are best directed to assist the public. 

In which regard, ministers stress their plan to integrate health and social care. 

So the NHS will be protected - but with a requirement to change. The First Minister Nicola Sturgeon has already emphasised the key role of education in building the economy - so schools can expect cash, particularly to enhance and broaden attainment. 

Terror threats have added to the need to protect the police budget, and it is thought Mr Swinney will respond to that. And Ministers have already promised a substantial boost to child care, doubling the hours available to families.

In terms of spending curbs, it seems likely that the wider local authority budget may be vulnerable; council tax is expected to be frozen again, and it represents a significant proportion of overall spending.