Free dental checks will be phased in

Andy Kerr also promised more nurses, teachers and police when he set out spending proposals for the next three years in the Scottish Parliament.

He said the executive will take a "common sense approach" in how it funds changes during this parliamentary term.

The minister revealed the executive had a �394m underspend last year and said the money will be spent on various projects.

The end year flexibility (EYF) money will be used to tackle crime, anti-social behaviour and provide free eye and dental check-ups across Scotland.

'Prudent step'

The spending plans follow the partnership agreement struck between Labour and the Liberal Democrats.

Addressing the Scottish Parliament on Thursday, the minister said the executive's approach to EYF represented "good financial management".

"End year flexibility means that money is neither lost by being returned to the Treasury, nor is it wasted in a rush to get it out the door," Mr Kerr told MSPs.

"Those bad old days are over."

Executive's Spending Plans This is about delivering what we said we would Andy Kerr Finance Minister �69m to tackle disorder �80m for health �78m for education �7.5m for the national theatre

Mr Kerr said �65m has been earmarked to tackle crime and address anti-social behaviour.

He said funding will be available to recruit 12,000 more nurses and 3,000 extra teachers and it will be up to individual police forces to decide on the additional officers recruited from their share of law and order funding.

He said funding will help provide a national theatre for Scotland and fund the introduction of 20mph speed limits outside every school.

Mr Kerr told parliament that the executive will receive �196m this year after the Treasury agreed to cover more of the costs of housing stock transfers.

Business rate income generated an extra �148m in 2002/03.

The minister also said �323m will be held in reserve to cover any unforeseen circumstances over the next two years.

He said: "This is a responsible course and I am taking this prudent step now to ensure that we can deliver our promises over the life of the parliament.

"We believe that the spending plans set out in the draft budget will help deliver greater economic prosperity, better public services and an improved standard of living for the people of Scotland.

"This is about delivering what we said we would."

There is little in this budget which tackles climate change in any sort of meaningful way Mark Ballard Green MSP

Lib Dem MSP Jeremy Purvis said the spending plans would bring "innovation" to the health and education systems.

Opposition parties were unimpressed with the spending plans.

Scottish National Party finance spokesman Fergus Ewing criticised the executive for its "endemic and habitual" underspend.

Tory finance spokesman Brian Monteith called for a cut in business and water rates.

He said the number of new business start-ups had fallen from 25,000 in 1997 to 18,000 in 2002.

'Voluntary activities'

"There are real problems in the Scottish economy, and I think the minister and the ministerial team recognise that."

Green MSP Mark Ballard said: "There is little in this budget which tackles climate change in any sort of meaningful way. A massive reduction in the use of fossil fuels is needed."

Scottish Socialist MSP Frances Curran said the executive should use money earmarked for tackling anti-social behaviour to provide better facilities for young people.

She said: "In most communities in Scotland those who provide voluntary activities for young people spend the whole year scrambling about for money to keep them going.