
The budget is expected to pass the Scottish Parliament on Tuesday after a deal was reached with the Greens.
Finance Secretary Kate Forbes announced on Monday to the Finance and Constitution Committee that agreement had been reached to ensure the spending plans are approved by MSPs.
In order to secure the Greens support for the fifth year in a row, the Scottish Government has pledged to extend the concessionary travel scheme – announced as part of last year’s budget deal and due to come into force this year – to anyone under 22 years old.
Pleased to have reached agreement with @scotgp on the Budget, enhancing public sector pay, expanding free bus travel to under 22s and accelerating expansion of free school meals, alongside more capital investment in energy efficiency. I’m still in discussions with Lib Dems.
— Kate Forbes MSP (@KateForbesMSP) March 8, 2021
Ms Forbes has also agreed to pay rises for public sector workers, amounting to £800, or around 4%, for those earning under £25,000, 2% for those between £25,000 and £49,000 and 1% above that.
The Greens also secured Covid-19 relief payments of up to £130 for low income families as well as two further instalments of £100 each in August and December for families with children eligible for free school meals.
Half a million families will receive the smaller payment, while 170,000 will be eligible for the full £330, the Greens have said.
All primary school pupils in Scotland will also be able to claim free school meals during term time, under the new plans, and £40 million will be invested in active travel, energy efficiency and other environmental efforts.
Despite the deal being reached with the Greens, talks remain ongoing with the Scottish Lib Dems to garner their support for the vote on Tuesday, expected run into the evening.

Scottish Labour leader Anas Sarwar said talks between the Finance Secretary and his party were advancing well, before they took the less expensive option of the Greens, with his party pushing for a pay rise for social care workers.
He told journalists on Monday: “I think they were having very good discussions about getting a fair pay increase for our social care staff but it seems they have been able to strike a cheaper deal, to put it bluntly, with the Greens.”
However, he said he would wait to see the detail of the deal and the final Bill before the party would decide its position.
Scottish Tory leader Douglas Ross said his party would vote against the budget, claiming it did not deliver free school meals or fair funding for councils.
“We cannot endorse an SNP Budget when they have plans to wreck Scotland’s recovery by continuing their push for indyref2 as early as this year,” he said.
Meanwhile, Scottish Liberal Democrat leader Willie Rennie confirmed his party’s support, saying: “We think that people expect parties to work together in the middle of a pandemic. Our focus has been to put recovery first.
“We have highlighted the need for business support, an education bounce back plan, and better mental health services, given the pressure we know that the virus crisis has put on people.
“As a result of discussions since then, further changes have been agreed which allow Scottish Liberal Democrat MSPs to support the budget at its final stage tomorrow.
“This includes additional money for supporting pupils, training fund for the North East to support the just transition, a further £90 million for local authorities and money to support farmers engaged in environmental stewardship.”

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