SNP MSP Ash Denham asks health spending and modernisation.

Derek Mackay says it is important to focus funding on areas which will see interventions which reduce demand.

Supporting more sustainable models of care and digital innovation are two areas to focus on, he says.

Mental health investment will also support early intervention, Mr Mackay adds.

Tory MSP Murdo Fraser says at the meeting in Aberdeen Mr Mackay said there was £158m underspend figure but 12 working days later it had gone up by £110m.

Mr Fraser asks: "Is that reasonable?"

"Yes it is," replies Mr Mackay.

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Mr Mackay says these figures can change.

Mr Fraser asks: "Do you not think you are holding the committee in contempt?"

Mr Mackay says no and accuses Mr Fraser of using colourful language.

Labour MSP James Kelly suggests the reserve is set aside as a "slush fund" for negotiations.

The finance secretary says setting out underspend and what the government could use it for is "not a bad thing".

Mr Kelly argues that publishing the underspend forecast would be helpful for negotiations.

Derek Mackay notes the figure is in the Scottish government's paper but warns it is a moving figure.

It will continue changing until the year end, he says.

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Mr Mackay says he tried to answer the question but the final determination about what is deployed will be dictated by the budget exchange.

The finance secretary says the position may change due to budget carry over and he says he has been open and transparent.

Tory MSP Adam Tomkins asks whether the cabinet secretary has considered to committee's recommendations on transparency.

Mr Mackay confirms this will be covered in his response to the report, to be published before stage 3.

Mr Tomkins asks for transparency around the Scotland reserve.

The finance secretary says payments into the reserve, which change from year to year, can be deployed in future years.

This will fund the proposition to secure the passing of the budget, he says.

"I don't think that was a very transparent answer," says Mr Tomkins.

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Mr Mackay says the final mix of underspend and reserved draw down will be clear at the end of the year.

Committee convener Bruce Crawford says there is a potential risk to public finances if the forecasts are wrong.

The finance secretary says he wants the forecasts to be as robust as possible but no-one gets it exactly right to the penny.

He says there is provision to borrow if the foreasts are well out.

Finance Secretary Derek Mackay says the amendments give effect to the changes announced in last week's stage 1 debate.

He confirms these cover:

• £127m for local government
• £10.5m for inter-island ferries for Orkney and Shetland
• £2m for fuel poverty
• £200,000 for delivering marine protected areas
• £70,000 for the Scottish Sports Association

He also states that up to £2m will be available for a local rail development fund, these this is not covered in the amendments as discussion on this are ongoing.

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Last week the Scottish budget passed its first parliamentary hurdle after winning the support of the Greens.

Finance Secretary Derek Mackay had been in negotiations with opposition leaders to find backing for the plans he first outlined in December.

A deal was reached last Wednesday after the Greens won an additional £170m for local councils.

And public sector pay rises will now apply to 75% of workers rather than the 51% that was originally proposed.

• Scottish budget: what does it mean for me?
• Scottish income tax proposals unveiled

Read more here.

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Committee convener Bruce Crawford introduces Finance Secretary Derek Mackay and his officials.

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MSPs will now vote on amendments to the Budget (Scotland) (No.2) Bill, external after evidence from Finance Secretary Derek Mackay.

• Here is the marshallled list of amendments for Stage 2, external
• Here are the groupings list of amendments for Stage 2, external

Changes to the Scottish Government's budget will raise an extra £62 million, the Scottish Fiscal Commission has confirmed.

The independent body has published official forecasts for income tax revenue, updated to reflect revisions to the 2018/19 tax and spending plans approved by MSPs last month.

The extra revenue comes from a change to the higher rate threshold and the extension of the public sector pay rise.

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An anomaly in the draft budget proposals from December would have seen those earning between £43,525 and £58,500 paying less tax rather than more.

Finance Secretary Derek Mackay said this would be addressed by changing the higher rate threshold to £43,438 rather than the £44,274 that had originally been proposed.

The commission forecasts the move will raise a further £55 million, taking the total additional revenue raised by the final income tax policy to £219 million.

The extension of the Government's public sector pay policy to apply to 75% of public sector workers is forecast to raise a further £7 million in income tax.

Tory MSP Murdo Fraser notes the SFC's conclusions on tax liabilities and queries the difference between its and the Scottish government's figures on the income of people who will pay less.

David Stone says the distinction is based on the years used for comparison. He notes the Scottish government paper includes both figures and explains the difference.

SNP MSP Willie Coffey asks whether the forecasts are cautious.

Professor Alasdair Smith states they are not "pushed downwards to be deliberately cautious".

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Scottish Green Party co-convener Patrick Harvie says it is a bit of a breakneck process and he calls for more calm.

Professor Alasdair Smith says a change in the government's policy, as announced last week, can be processed quite quickly.

He says it is done speedily and efficiently and it wouldn't be fair to say it was a breakneck process.

John Ireland says the SFC did not work over the weekend he is grateful to say.

Labour MSP James Kelly asks about challenge meetings.

SFC chief executive John Ireland says a series of challenge meetings took place prior to the December forecast.

The Scottish government does not have to use the SFC's forecast figures, but must write to the finance committee convener to explain the decision not to, Mr Ireland says.

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Committee convener Bruce Crawford reminds us about OBR chair Robert Chote's comment on forecasts that it is like playing spot the ball.

Mr Crawford says forecasts will always be wrong and the witnesses do not demur.

Green MSP Patrick Harvie asks about the evidence base for behavioural changes.

David Wilson points to academic literature considering comparable countries which have made similar changes to income tax.

The work of the HMRC on the 2010-12 changes to income tax at UK level has also been used, he says.

Mr Wilson says the precise impact of changes to the higher rates are uncertain, though it is clear that higher rate pays are more likely to change their arrangements.

Further information on modelling will be published on 7 March.

The commission was established on a non-statutory basis in June 2014 to scrutinise the Scottish government's devolved tax forecasts.

In April this year, it became a non-ministerial department, structurally and operationally independent of the Scottish government.

It is now responsible for producing independent forecasts for Scotland on issues such as tax revenues, expenditure on social security and onshore Gross Domestic Product (GDP).

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It works closely with the UK's Office for Budget Responsibility, Revenue Scotland, the Scottish government, HMRC and other bodies.

Commissioners are accountable to and give evidence to the Scottish Parliament.