Finance Secretary Derek Mackay pledges a funding increase of £240m for local services
Opposition parties said the amount of cash going direct to councils will be cut.
The finance secretary does not change income tax rates or bands - but does not pass on the UK Treasury's tax cut for high earners
Mr Mackay reveals the draft budget for 2017-18
£120m for the education attainment fund, with the cash going directly to schools, a u-turn with the cash coming from central government and not councils
Scottish Conservative MSP Liz Smith asks about the total cost of childcare plans.
Finance Secretary Derek Mackay says he will write to Ms Smith with that answer but he thinks it is the right direction in order to help the economy.
Mr Mackay says every local authority keeps its council tax and the attainment fund will be allocated on a "needs basis".
The finance secretary says Glasgow will get around £21.5m from the fund.
SNP MSP John Mason says he welcomes the extra £120m for schools and asks if it will be allocated on the basis of need.
Mr Mackay says no projects will be delayed.
The finance secretary says the enterprise budgets require efficiencies.
He adds that he expects efficiencies across the public sector.
Scottish Labour MSP Jackie Baillie asks, if the economy is so important, why has the Highlands and Islands Enterprise budget been cut?
Ms Baillie asks why the finance secretary has been silent on infrastructure projects.
The finance secretary says Kenny Gibson has a point, greeted with laughter in the chamber.
Mr Mackay says Mr Swinney secured a better fiscal framework.
Published block grant figures show £46m better off as a result of using the Scottish model, he adds.
Ken Gibson says he welcomes the statement and notes the "crocodile tears of the tories" over the council tax plans.
Mr Gibson asks what the impact would have been if the UK government's cuts went forward as planned without "a peep from the Scottish Tories".
Finance Secretary Derek Mackay says it was the Tories that "gave us Brexit chaos, austerity and nuclear weapons, along with tax cuts for the rich".
Mr Mackay details the measures he says will help the economy.
He adds that the budget is a very sound package to help the economy.
Scottish Conservative MSP Dean Lockhart says improving the economy is the single most important issue.
Mr Lockhart says this budget has done nothing that will boost economy or international trade.
He asks if the finance secretary understands the seriousness of boosting the Scottish economy.
SNP MSP Clare Haughey says it would be ridiculous for local authorities not to use council tax now the freeze is over.
Mr Mackay says the government wants to see a limit of 3% on council tax increases.
Mr Rennie says Scotland needs a transformational budget and "this budget falls well short of that".
He says the finance secretary has miles to travel before an agreement can be reached.
Mr Mackay says if Mr Rennie engages with him he will see the positivity of this budget.
The finance secretary adds that there is a strong package of support for the Highlands and Islands.
Scottish Lib Dem Leader Willie Rennie says he welcomes the decision to abandon the council tax plan.
But he asks why the Highlands and Islands Enterprise budget has been cut.
Mr Mackay says he listened to worries about the attainment fund and he says the Scottish people voted for the SNP's tax plans.
The finance secretary says ministers have taken a pay freeze since 2008.
Greens MSP Patrick Harvie says he regrets that Mr Mackay is not listening to anyone on income tax policies.
He says the Scottish government has the chance to change the Tories income tax policies but has chosen not to.
Labour MSP James Kelly asks why the SNP have reversed their position on a top tax rate for 50p.
Mr Mackay says the SNP is delivering its manifesto commitment from this year's Holyrood election.
He says increasing the top rate risks losing revenue.
The finance secretary says the Scottish government has a far better relationship with NHS staff than the UK government.
Mr Mackay says only the SNP is delivering more for the NHS.
Scottish Conservative MSP Donald Cameron asks if the finance secretary can confirm what funding will got directly to struggling GPs.
SNP MSP Bruce Crawford asks if the cabinet secretary would confirm if the uplift in Scotland is above inflation and better than "any other party in this chamber".
Mr Mackay says: "It is a good deal and a fair deal and no wonder Cosla have not rejected the package that I have offered to them because they know it is good and fair proposal that's been set out by the Scottish government."
The finance secretary says Labour should welcome more money for education.
He says the Scottish government has surpassed the commitment to £120m for the attainment fund.
Mr Mackay says he can't help but reflect where Jeremy Corbyn sits on this and he wonders if Ms Dugdale thinks Mr Corbyn is "no better than a Tory".
He says it is just not true that there is not more money for public services, he says there is an extra £700m.