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21 September 2011
Last updated at 10:34 ET
Finance Secretary John Swinney has announced a new levy on major retailers.
The measure is part of the Scottish government's spending plans for the coming year.
Mr Swinney also confirmed a five-year freeze in council tax and said public sector pay would be frozen for the next year.
The opposition at Holyrood accused Mr Swinney of moving the effect of UK-wide cuts to Scotland's local authorities.
The plans included a boost to government-backed capital investment, intended to support economic recovery.
More than £750m will be transferred from resource expenditure into the capital investment programme.
Mr Swinney told MSPs: "This spending review contains tough choices because of the cuts from Westminster that go too far, too fast.
"We have had to restrict pay costs, reluctantly implement pensions increases on public sector staff, and maximise the income gained from asset sales."
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Finance Secretary John Swinney said the pursuit of efficiency would be ''relentless''
Mr Swinney stood by the Scottish government's commitment to freeze council tax levels for five years, and said he would provide funding to cover the freeze.
Part of the additional revenue being raised by the Scottish government will come from a levy on major retailers supplying alcohol and tobacco products.
During the last parliament, a proposal to introduce a wider measure which came to be known as the "Tesco tax" was voted down by opposition MSPs.
Labour's finance spokesman, Richard Baker, accused the SNP of passing on the pain to local authorities.
He said education and social work budgets would be particularly badly hit.
"The Scottish government has passed the buck for the decisions they have made today," he said.
"There has been no rabbit out of the hat from Mr Swinney and there is a great deal of pain for key parts of our economy and many people in our society in this budget."
'Who pays?' Scottish Labour leader Iain Gray said he had argued that a five-year council tax freeze seemed "unaffordable" and asked: "Who's going to pay the price for it?
"Is it public sector workers who are already seeing their jobs going? Is it public sector pay?"
Scottish Liberal Democrat Leader Willie Rennie, whose party previously suggested a two-year freeze, said of the Scottish government: "At a time of great economic difficulty, they need to be reflecting on policies that will deliver economic growth, and I'm just not sure that a five-year council tax freeze will actually put the economy as a priority."
Annabel Goldie, the Scottish Conservative leader, said she was "sceptical" that key SNP manifesto pledges could be delivered, and suggested it was time for policies, such as free prescriptions, to go.
"We're busy spending money on free facilities which I don't think we can afford any longer," she said.
Miss Goldie added: "First Minister Alex Salmond wants to be popular all of the time instead of planning for the long-term future by taking realistic decisions at the current time."
Elsewhere in his plans, Mr Swinney is considering public service spending cuts in order to put more cash into capital projects such as housing and transport, by moving resources from revenue to capital budgets.
He has also promised "radical" reform to public services, including more collaborative working and efficiency savings.
The Scottish government has already announced its intention to move towards a single police force, as well as a national fire and rescue service.
Ministers said they had already beaten their efficiency targets, by saving £2.2bn across the public sector.
MSPs are expected to vote on the spending proposals for 2012-13 in the spring.
But with a majority in parliament, Mr Swinney's plans are expected to be unopposed.
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The measure is part of the Scottish government's spending plans for the coming year.
Mr Swinney also confirmed a five-year freeze in council tax and said public sector pay would be frozen for the next year.
The opposition at Holyrood accused Mr Swinney of moving the effect of UK-wide cuts to Scotland's local authorities.
The plans included a boost to government-backed capital investment, intended to support economic recovery.
More than £750m will be transferred from resource expenditure into the capital investment programme.
Mr Swinney told MSPs: "This spending review contains tough choices because of the cuts from Westminster that go too far, too fast.
"We have had to restrict pay costs, reluctantly implement pensions increases on public sector staff, and maximise the income gained from asset sales."
Please turn on JavaScript. Media requires JavaScript to play.Finance Secretary John Swinney said the pursuit of efficiency would be ''relentless''
Mr Swinney stood by the Scottish government's commitment to freeze council tax levels for five years, and said he would provide funding to cover the freeze.
Part of the additional revenue being raised by the Scottish government will come from a levy on major retailers supplying alcohol and tobacco products.
During the last parliament, a proposal to introduce a wider measure which came to be known as the "Tesco tax" was voted down by opposition MSPs.
Labour's finance spokesman, Richard Baker, accused the SNP of passing on the pain to local authorities.
He said education and social work budgets would be particularly badly hit.
"The Scottish government has passed the buck for the decisions they have made today," he said.
"There has been no rabbit out of the hat from Mr Swinney and there is a great deal of pain for key parts of our economy and many people in our society in this budget."
'Who pays?' Scottish Labour leader Iain Gray said he had argued that a five-year council tax freeze seemed "unaffordable" and asked: "Who's going to pay the price for it?
"Is it public sector workers who are already seeing their jobs going? Is it public sector pay?"
Scottish Liberal Democrat Leader Willie Rennie, whose party previously suggested a two-year freeze, said of the Scottish government: "At a time of great economic difficulty, they need to be reflecting on policies that will deliver economic growth, and I'm just not sure that a five-year council tax freeze will actually put the economy as a priority."
Annabel Goldie, the Scottish Conservative leader, said she was "sceptical" that key SNP manifesto pledges could be delivered, and suggested it was time for policies, such as free prescriptions, to go.
"We're busy spending money on free facilities which I don't think we can afford any longer," she said.
Miss Goldie added: "First Minister Alex Salmond wants to be popular all of the time instead of planning for the long-term future by taking realistic decisions at the current time."
Elsewhere in his plans, Mr Swinney is considering public service spending cuts in order to put more cash into capital projects such as housing and transport, by moving resources from revenue to capital budgets.
He has also promised "radical" reform to public services, including more collaborative working and efficiency savings.
The Scottish government has already announced its intention to move towards a single police force, as well as a national fire and rescue service.
Ministers said they had already beaten their efficiency targets, by saving £2.2bn across the public sector.
MSPs are expected to vote on the spending proposals for 2012-13 in the spring.
But with a majority in parliament, Mr Swinney's plans are expected to be unopposed.
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