John Swinney has announced the Scottish Government will hand over an additional £100 million in funding to the country's hard-up councils.
And he also said local authorities would be able to charge higher fees for parking infringements in a bid to raise more cash.
The Deputy First Minister said today the additional funding would help local authorities settle outstanding pay disputes with workers.
Swinney was speaking before MSPs voted on the final stage of the government's budget for the next financial year.
"The £100 million is additional resources to what was announced last week," he said.
SNP ministers recently received an additional £125 million from the UK Government in Barnett consequentials - the funding mechanism which calculates Holyrood's block grant from Westminster - and have allocated £100 million of it to councils.
Swinney added: "This additional funding for 2023/24 is on top of the £570m increase in funding that has already been included in the local government settlement, and takes the total additional funding next year for local government to £793 million.
"As a result of the decisions in this budget, the total funding available for councils to support local services will be nearly £13.5 billion, plus the revenues from any local decisions on council tax.
"This is equivalent to a three per cent real terms increase compared to the 2022/23 budget bill."
An extra £6.6 million will also be given to Creative Scotland to ensure the agency - which distributes grants to arts groups - did not have to rely on Lottery funding.
The budget will increase taxes on higher and middle earners, with all Scots earning more than £43,662 facing a rise in income tax to provide extra funding for the NHS.
SNP ministers have come under increasing pressure to hand councils more money as town halls struggle to close massive funding gaps in their budgets.
Cosla, which represents all 32 councils in Scotland, has previously warned that as many as 7,000 jobs could be slashed as a result of the financial pressures they faced.
Council budgets have been hammered by soaring inflation as well as years of real terms funding cuts passed on from central government.
Labour’s Daniel Johnson said the SNP leadership race meant the party's new leader would inevitably make changes to the budget.
"This is not a budget that will last," he said. "I don’t see any of the leadership candidates, once elected, leaving the budget well alone."
Alex Cole-Hamilton, the Scottish Lib Dem leader, said his party would vote against the budget.
"Despite the evidence and reports of multiple committees of this parliament, local government, trade unions, charities and frontline workers, the National Care Service Bill has still not yet been abandoned," he said.
"When the NHS Recovery Plan was launched, one in five children were waiting too long for mental health treatment. Now it is one in three. To freeze the mental health budget, on top of the £38m cut this year, is a recipe for more missed targets and scandalous long waits. "
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