Over 70% of households in Scotland will receive £150 in a bid to ease the cost of living crisis.
Finance Secretary Kate Forbes said the cash would be targeted at households in receipt of council tax reduction and those living in property bands A to D.
She said this would reach 73% of all households north of the border.
The third element of the package is £10 million in 2022-23 for the Fuel Insecurity Fund, which helps households at risk of self-disconnection, or self-rationing their energy use.
Forbes’ Budget announcement came amid deep concern families will be unable to pay soaring energy costs.
Rising gas prices come on top of high inflation, looming tax rises, as well as water bill and rail fare increases.
UK Chancellor Rishi Sunak last week announced plans for a council tax rebate in England and Forbes today revealed how she would spend £290m to help families.
Explaining the £150 policy, Forbes said: “I have discussed this matter directly with [council body] COSLA, indicating my preference for this to be distributed as a payment rather than as a Council Tax credit.
“However, due to the urgency of mobilising this funding quickly, Councils will have a choice – they can deliver a direct payment or a credit to Council Tax accounts, as long as it can be done in April.”
She added: “This is clearly an imperfect scheme, it will reach some households who may not need this, but it is the only route we have to make sure we reach those for whom it will make a difference, quickly and simply.”
Earlier in the day, Scottish Labour unveiled a more targeted plan that would give £400 to those hardest hit by the cost of living crisis.
The payment would be given those in receipt of council tax reduction, pension credit, child’s winter heating assistance or the carer’s allowance supplement.
Labour costed their plan at £238 million.
At First Minister's Questions, Scottish Labour leader Anas Sarwar asked Sturgeon if she would back the proposal.
She said: “Of course we will look carefully at any proposals that come from Labour or anybody else, but like most of Labour's proposals, they lack any indication of how the plan should actually be paid for. The Scottish Government's actually got to fund the things that we do.”
Sarwar said the First Minister’s answers were just not “good enough” and asked if she would reverse the plans for rail and water rises.
She replied: “Both rail fares and water charges on average are lower in Scotland than they are elsewhere in the UK.”
Forbes said of the backdrop to the special £150 payment: “The additional energy costs alone will place significant burdens on many.
"Estimates suggest this could move a further 211,000 households into fuel poverty, and around 235,000 households who were already fuel poor into extreme fuel poverty.
"This would result in a total of 874,000 fuel poor households – an increase of 43% on most recent 2019 published statistics – and 593,000 households in extreme fuel poverty.”
Green MSP Ross Greer, whose party shares power with the SNP, said: “At a time when the UK Government is hiking National Insurance, cutting Universal Credit and protecting oil & gas corporations from paying their fair share of tax, I’m proud that here in Scotland the parties of government are delivering the help families really need.
“Despite the backdrop of a billion-pound cut from the UK Government, our budget delivers on the key Green priorities of tackling child poverty and the climate emergency.
“It includes the biggest increase in funding for teacher recruitment since 2007 and of course, free bus travel for young people and the doubling of the Scottish Child Payment. That’s the difference Greens are making in government.”
Citizens Advice Scotland Chief Executive Derek Mitchell said: “Further support for people struggling is certainly welcome, however the stark reality is that lots of people are still going to be significantly worse off.
“The spring is going to see a cost of living crisis which will squeeze household budgets to breaking point. People are already struggling badly, with 1 in 3 of us finding bills unaffordable right now, and half a million people in Scotland cutting back on food to deal with bills.
“There are underlying factors at play here. 640,000 people would cite low incomes as a reason for unaffordable bills, while over 380,000 people would cite hard to heat homes. That’s the long term challenge for policy makers – better paying jobs, better insulated homes, and increasing our use of renewable energy.
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