The budget will see income tax rates in Scotland remain unchanged, however, the threshold where upper rates are implemented will be frozen.

Additional investment will be given to health, education and toward tackling climate change.

Among the spending commitments in the budget are:

• More than £15bn for health and care services
• £117m of investment in mental health support
• A real-terms increase in revenue funding for councils
• £180m for closing the attainment gap in schools
• £270m for rail services
• A 60% boost in funding to reduce harm from alcohol and drugs

The Scottish Government will also establish a free bus travel scheme for under 19s by January 2021, which will be in addition to the existing free bus trips for the over-60s.

Commenting on the budget, Mark Ruskell, Scottish Green environment spokesperson, said: “This is a historic budget, thanks to the Scottish Greens. Next year over 700,000 young people across Scotland and their families will benefit from free bus travel for under 19s.”

The change formed part of a deal struck by the minority SNP government in return for the support of the Scottish Greens, which also included an additional £95m being given to local authorities, as well as £18m to police services and £45m to low carbon projects, the BBC reports.

Kate Forbes, finance secretary, led the negotiations for the deal. She said: “I’m pleased that Parliament has supported this budget which will deliver certainty for our vital public services and local government.

“It supports our ambitious plans to accelerate Scotland’s transition to a net-zero economy and provides a record £15bn investment for health and social care. It will also help us tackle inequalities, deliver first-class public services and ensure no taxpayer in Scotland will pay more income tax on their current income.”