The Scottish Government is preparing to use new borrowing powers being handed to ministers "to the max", Finance Secretary Derek Mackay has revealed.

As part of the devolution of new powers to Holyrood, Scottish ministers will be able to borrow up to £3 billion, with a maximum annual limit of £450 million.

As MSPs on the Finance Committee pressed Mr Mackay on his plans for 2017-18, SNP MSP Maree Todd asked if ministers would "fully" use increased borrowing powers.

Mr Mackay said: "In terms of our new powers from the Scotland Act, we will use them to the max.

"Our proposal is to set out further spending plans around borrowing and we fully anticipate using them to the cap of £450 million. We do intend to use them over the course of the year."

Mr Mackay also defended the SNP administration's income-tax plans after the Tories raised concerns Scotland will be the highest-taxed part of the UK.

While the UK Government is to raise the earnings threshold for the higher 40p tax rate from its current level of £43,000 to £45,000, the Scottish Government has insisted it will not pass on "the Tory tax cut" to the group.

Instead, the threshold in Scotland will rise in line with inflation to £43,430.

Following adjustments to the Scottish block grant, this will raise "around £79 million" in revenue for the Scottish Government, the Finance Secretary said.

Conservative MSP Murdo Fraser said the SNP had "taken the decision in this budget to create a tax differential with the United Kingdom in terms of income tax".

Mr Fraser added: "There is a risk this sends out a message about Scotland being the highest-taxed part of the United Kingdom and the impact this might have on the ability to attract investment."

The Finance Secretary accused Mr Fraser of having "put out quite a negative message" on tax.

Mr Mackay said: "We're not passing on the tax cut for some of the richest in society, I think that's the right thing to do.

"But 99% of adults will pay no more tax given their current level of income than in 2016-17.

"The message that Scotland is high tax has really been put out by the Conservatives and I think that is unhelpful when it's the wider package that is important around taxation, and of course quality of life in Scotland as well."

Green co-convener Patrick Harvie questioned the Finance Secretary on why ministers had not made wider changes to income-tax bands and rates now they had the power to do so.

Mr Mackay said "at this time of uncertainty" the proposals from the Scottish Government would provide "continuity on the rates and bands but ensure that we are able to generate more income from a different position on tax from the UK Government".

The Green MSP said afterwards: "An inflation-based increase in the higher-rate threshold will only benefit high earners, who have already benefited from UK Government policies.

"The Scottish Government is quite unable to justify this while they refuse to make any progressive changes to income-tax rates and bands."