Economic growth will be the main focus of spending by the Scottish Executive over the next three years, Finance Minister Andy Kerr has said.

Mr Kerr outlined how he intends to spend about �70bn in what he called a "budget for growth and opportunity".

The budget indicates how all of the resources available to the executive will be used.

First Minister Jack McConnell described the budget as "a defining moment" for the parliament.

But the Scottish National Party said the minister had misled parliament over Scotland's share of funding.

Under the executive's plans, business rates will be frozen at their present level for a year as part a package of measures to aid commerce.

Transport and tourism are also big winners, with funding for rail links to Glasgow and Edinburgh airports and extra money to market Scotland as a tourist destination.

Andy Kerr: Growth and opportunity

The proposals include extra cash for training young people and investing an additional �235m in Scotland's transport infrastructure.

Mr Kerr said he plans to build or refurbish more than 300 schools over the next five years, at a cost of more than �1bn.

Health spending will rise to �8bn by 2005-06 and an additional �170m will be spent to implement the national waste strategy.

Mr Kerr said: "This is a budget for the long-term.

"A budget which will deliver improvements in lives across Scotland now, but crucially delivers long-term lasting change for years to come."

The minister's spending pledges include:

• A �1.15bn plan for more than 300 new or refurbished schools by 2008

• A �235m boost for transport spending over three years, including preparation on the A8 and A80 motorway upgrades

• �300m to be spent by 2006 on skills and opportunities for young people

• �40m investment package over three years for training and education

• �63m to be spent on tackling youth crime and anti-social behaviour.

Mr Kerr said that while some of the policy areas "may not be considered by some to be matters of high politics, they do matter in the daily lives of the people".

The first minister said: "I believe it is a budget that that will inspire businesses and improve the lives of people right across the country."

However, the SNP accused Mr Kerr of a "climbdown" over the true amount of money available to the executive.

Annabel Goldie: "A bit of a charade"

Alasdair Morgan, the party's finance spokesman, said: "Could he (the minister) get the people who brief on his behalf to cease the practice of counting, double-counting and triple counting, which result in announcements that �8.3bn would be his to dish out today - a figure that bears no relation to reality.

"It simply demeans his office and the whole political process."

Scottish Conservative deputy leader Annabel Goldie said she believed the announcement had been "a bit of a charade".

She said it was clear that First Minister Jack McConnell was not prioritising business.

"The question has to be whether this is being distributed in the best possible way for Scotland, and the Conservatives don't believe this is."