Additional £220m spending announced after budget deal
MSPs will vote on the first stage of the budget later on Thursday at Holyrood.
The Scottish Government has announced an £220m of additional spending after budget negotiations with the Scottish Greens.
Finance secretary Derek Mackay made the announcement to MSPs on Thursday as he asked them to back his budget at its first parliamentary hurdle.
Under the plans, councils will get £160m more than first announced in the draft budget in December while Scottish Enterprise will benefit from a further £35m.
Police Scotland will also receive an additional £25m.
The extra spending will be in part funded by not linking the threshold when people pay the 40p income tax rate to inflation, which could mean more workers fall into the rate each year.
The Scottish Government estimate an additional £29m of revenues coming from the change.
The finance secretary said: "I believe this is a balanced approach that is right for our economy and provides a measure of stability and continuity for the public and taxpayers at a time of economic uncertainty.
"However, I recognise that this is a parliament of minorities, where compromise and finding consensus is a necessity."
He added: "No party in this parliament has a majority, however the considerable mandate we were given in the election means I believe it would not be right for there to be a fundamental change to the proposals we put to the people of Scotland.
"However having considered the proposals put to me, I can confirm that this government will lodge a Scottish rate resolution that sets the same tax rate as originally proposed but which applies a cash freeze on the higher threshold."
Scottish Labour leader Kezia Dugdale said the Green party's backing for the budget despite no change to tax rates, only a single threshold, was "deeply disappointing".
Dugdale also said she "rejected completely" any suggestion that her party had been "playing games" over the budget process, saying talks with Mackay had been "cordial and constructive".
The Labour leader said: "We have been very clear from the offset, we said the price of our vote was no cuts to public services, and the more they try to bait me to say that Labour was never serious about engaging in this Budget the more inclined I might be to say exactly what we were talking about in those meetings.
"Because the truth is, in those meetings this finance secretary spent the first half of the meeting saying there were no cuts and then the rest of the meeting saying, how much do you need to get rid of those cuts, we won't do it after all. Completely duplicitous."
Scottish Conservative finance spokesman Murdo Fraser said the SNP is now aligned with the Greens who are "lentil munching, sandal wearing watermelons."
He told MSPs "They have let Patrick Harvie pull all the strings and it will be hard working Scottish families that suffer as a consequence.
"The finance secretary had a choice going into today's debate. He could have come with us, drop his plans to make Scotland the highest taxed part of the United Kingdom and work together with us to deliver an ambitious Budget focused on growing the economy.
"Or he could turn sharp left and embrace the anti-growth, anti-business agenda of the Green party. What a pity, what a tragedy for Scotland that he chose to throw in his lot with the lentil munching, sandal wearing watermelons on that side of the chamber."
The Scottish Greens have vowed to vote for the budget later on Thursday at Holyrood and at further stages.
Green co-convener Patrick Harvie said: "The cuts under consideration around the country at local council level are things that none of us should be willing to impose on our local councils.
"Greens regard it as unacceptable and the basis of this compromise is not as Kez (Dugdale) tried to say £29m, the basis of this compromise is an additional £160m being added to the un-ringfenced local government allocation, the biggest single budget concession since devolution.
"Meaningful differences in local communities up and down the country."