The Scottish Government has been given extra borrowing power by Chancellor George Osborne.

SNP ministers will have access to increased capital spending powers of about £296 million in 2015/16, which can be spent on infrastructure, but will see their day-to-day resource budget slightly cut by 1.9% in real terms to £25.7 billion.

The knock-on impact of spending in England increases the available capital spending north of the border by more than £400 million to £3.3 billion, according to the UK Government's Scotland Office.

UK ministers said it demonstrates the positive case for the union.

But Scottish Finance Secretary John Swinney said cuts and debts are being piled on the country.

Any extra borrowing will have to be paid back with money from a declining revenue budget, he warned.

Scottish Secretary Michael Moore, a Liberal Democrat MP, said: "The Scottish Government has asked for additional capital resource and the UK Government has delivered it. They must now use it to invest in Scotland and help the economy grow.

"This good news is coupled with the fact the Scottish resource budget will be about flat cash in 2015/16, significantly better than the reductions across the rest of the UK.

"Being part of the larger UK economy and pooling resources from a wide UK tax base allows Scotland to have a stable budget that can be allocated from Edinburgh. Being part of the UK also protects Scotland from the volatility of resources such as oil and its potential impacts on annual budgets.

"The Scottish Government should welcome today's news as a fair and positive result for Scotland."

Mr Moore's department, along with the Welsh and Northern Ireland offices, will be hit with a 10% cut.

The Chancellor announced wider cuts of £11.5 billion in spending to balance the UK books.

Mr Swinney said Scotland is being hit by cuts worth £3.2 billion over the five years to 2015.

The "conventional" capital budget has declined in real terms by 26% since 2015, with more reductions to come, he said.

"Today's spending review sees a further reduction to the Scottish budget, piling cuts on top of cuts and another attempt by Westminster to hide their failed economic policies behind promises of loans and borrowing far into the future," he said.

"The UK Government has slashed Scotland's capital budget by 26% in real terms since 2010/11.

"The cumulative impact of these cuts is worth £3.2 billion removed from Scotland's economy.

"At the same time, instead of helping households, the UK Government has attacked the incomes of working households who have been made to pay for Westminster's economic mismanagement.

"Scotland did not vote for this disastrous economic agenda and next year we can choose to take a different and better path, with all of Scotland's resources at our disposal."