The SNP have struck a deal with their pro-independence allies to save their £30bn budget from defeat.
Finance Secretary Derek Mackay says the support of the Scottish Greens will give them the Holyrood majority required for his tax and spending plans to pass.
The deal is thought to include an extra £160m for cash-strapped councils and a freezing of the income tax threshold for higher ratepayers.
Mr Mackay tweeted: “I’ve reached a deal with @scotgp for all stages of the budget to pass. Good news for the economy, taxpayers, communities & public services.”
Confirming the deal, a spokesman for the Scottish Greens said they have secured “significant additional funds” from the Scottish Government to protect local council services.
The Greens have been pursuing an extra £160m for local authorities, as well as a more progressive income tax system.
An Scottish Government source said the deal includes freezing the threshold for the higher rate of income tax, rather than shifting it in line with inflation.
The SNP have refused to follow the UK’s raising of the 40p threshold to £45,000, saying that would be a tax cut for the richest in society.
Under the Scottish Government’s amended proposals the threshold is set to stay at £43,000.
The Scottish Greens spokesman said: “A substantial package of funding for local councils to spend on local priorities is welcome.
“Opposition parties have a responsibility to make a difference, and that’s exactly what the Greens are doing.”
A Holyrood debate on the plans, and the agreement between the Greens and the Scottish Government, is set to take place this afternoon, before MSPs vote on the general principles of the bill tonight.
