JOHN Swinney has pumped more than £400 million into the Scottish Budget, with colleges, transport, housing and health receiving extra funding as part of Scotland's attempts to recover from the global economic problems.

The Finance Secretary said it would support economic growth and improve public services in the face of challenges, particularly in the eurozone, and Westminster public spending cuts.

Labour claimed it was a "Budget of despair", and the Tories said it would make the country less competitive within the UK.

His package included £382m worth of additional capital spending over the next three years, which the Government said would support about 5000 jobs. Mr Swinney found an extra £11.4m for student support and another £8m for colleges in the coming year from the revenue budget. It is combined with £20m of new investment already announced for colleges.

Mr Swinney said: "This is a Budget that boosts public sector capital investment, takes direct action to tackle unemployment, in particular youth unemployment, and enhances economic security across the Scottish economy."

He also pledged £97m for housing over the next four years. It includes £10m of already-announced cash for council house building, an extra £45m from this year until 2014-15 for affordable housing, and £42m to fund loans and equity investment over the spending review period, with some being used to fund the expansion of shared equity schemes.

The money is Scotland's share of additional Westminster spending which amounts to £450m in capital and revenue budgets over the next three years.

He is holding £20m in reserve until welfare reform proposals

are clarified, leaving around £25m to be allocated.

Shelter Scotland director Graeme Brown said: "We look forward to hearing how many new homes for rent this will mean on top of the 6000 affordable homes per year already promised."

Instead of Mr Swinney's original planned cut of 30% to the affordable housing budget, it is now 18%.

Mr Swinney also found another £94m for local government, which includes £40m to support the development of rural broadband, £72m for roads and £60m for NHS capital maintenance.

Labour's Ken Macintosh said it was a "big disappointment" and failed to recognise the scale of the jobs crisis.

Party colleague Hugh Henry added: "This is a Budget of despair. It is smoke and mirrors."

Tory spokesman Gavin Brown attacked Mr Swinney's decision to stand by a public health supplement on large retailers that sell both alcohol and tobacco. He said the SNP wanted more powers but they currently "use them to make us less competitive without even doing an assessment on the jobs that it will cost".

CBI Scotland director Iain McMillan criticised the £131m in extra business rates to be levied on large retailers and firms with empty premises. He said it set an "alarming precedent" by singling out one part of one sector.