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
Ms Dugdale says the SNP government refuses to use its tax powers and refuses to get the richer people to pay one penny more on income tax.
The Scottish Labour leader says her party cannot support a budget with £300m cuts to local services.
Scottish Labour Leader Kezia Dugdale says this budget "will see the heart ripped out public services".
Ms Dugdale says however Mr Mackay tries to spin it, "we will see a real term cut to public services".
Mr Mackay says the budget has outlined a range of pro-enterprise and pro-business budget.
The finance secretary says the Scottish Tories can't cut tax and spend more on public services.
He says this is a very strong package for business rates.
Mr Mackay says he suspects the Tories will vote against the budget, and they will according to Murdo Fraser.
Finance Secretary Derek Mackay says Murdo Fraser has forgotten a number of things including the reduction to the Scottish government budget.
He says the Scottish Tories are "anti-devolution".
Mr Fraser welcomes the government's climb down on using council tax money for the attainment fund.
But the Conservative MSP says local councils face a revenue cut of £130m.
He adds that the finance secretary is making Scotland the most expensive part of the UK to work and live in.
Scottish Conservative MSP Murdo Fraser says this is a historic budget because the government has control over taxes.
Scottish Conservative MSP Murdo Fraser
Mr Fraser says this is thanks to the UK government and devolution.
He adds that it is disappointing that the finance secretary has chosen to hike taxes.
Mr Fraser believes it is not a budget his party can support.
Mr Mackay concludes saying overall, the budget delivers £700m of additional spending on "our economy and public services".
He says: "That is a budget for Scotland and I commend this budget to Parliament."
Mr Mackay says:
He says this additional investment in social care means that, in the coming year, there will not be an overall reduction in the funding provided by the Scottish government to support local government services.
The finance secretary gives a clear commitment to increase the NHS revenue budget by £500m above inflation by the end of this Parliament.
Mr Mackay says the government will invest £72m next year in an improvement fund for primary care and GP services and over £150m in mental health over five years.
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Mr Mackay says he has published a public sector pay policy for 2017-18 that guarantees the Scottish Living Wage, offers those earning less than £22,000 a basic pay award of more than 1% and caps other basic awards at 1%, whilst continuing "our no compulsory redundancy policy".
Quote MessageFrom birth and the earliest years, through school and beyond, education is this government’s number one priority.
Derek Mackay, Finance Secretary
Mr Mackay says next year, instead of £100m going direct to schools, £120m will be spent at the discretion of head teachers.
That will fund a new pupil equity scheme.
Mr Mackay adds that the government will not fund this from the Council Tax. Instead he will use the Scottish government's own resources.
Mr Mackay says at the election the government pledged £750m over the course of this parliament to the Attainment Fund.
He says that in a radical departure, £100m per year from that fund would be spent at the discretion of Scotland’s schools to help close the attainment gap.
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Mr Mackay says £221m will be committed to interventions that support skills, training and employment in Scotland.
He accuses the UK government of giving with one hand and taking away with the other in terms of the Apprenticeship Levy.
Mr Mackay says the government is prioritising education and this Budget provides the resources to match.
Mr Mackay confirms funding of more than £140m in 2017-18 to support energy efficiency programmes, as part of the government's commitment to invest at least £500m over this Parliament.
The finance secretary confirms capital funding of about £470m for housing in 2017-18, coupled with other funding mechanisms, to help deliver this commitment.
Mr Mackay says this Budget secures infrastructure investment of around £4bn.
Mr Mackay says he has signed, with Dundee City Council, the financial agreement to allow the Dundee Central Waterfront Growth Accelerator to go ahead, supporting economic growth in the area, and 500 jobs.