Labour will deliver - Morgan

The Welsh Assembly Government revealed its budget for part two of a three-year plan which had already set out how most of the �13.8bn would be spent.

Opposition parties - who could change the minority administration's budget - said they were examining it closely.

Plaid Cymru said it needed improvement, and Conservatives claimed Labour promised much, but delivered little.

The assembly government first set out its priorities in its three year financial plan in 2004.

Now, in the second year of that process, Finance Minister Sue Essex has set out some slight alterations and more detail.

As well as the extra money for health, Mrs Essex has set aside �30m for the next two years for student funding. The minority Labour assembly government struck a deal with the opposition parties, who had voted against university top-up fees.

DRAFT BUDGET EXTRA FUNDING Health and social services: �109m Education: �26m Local government: �12m Source: Welsh Assembly Government

Mrs Essex said health "continues to be our top financial priority" with extra going on improving access to NHS dentists and cutting waiting times.

Because Labour holds only 29 of the 60 assembly seats, the opposition parties have the power to force Rhodri Morgan's government to change its plans - if they can agree which points they all disagree on.

Plaid Cymru's Dai Lloyd said there were "a number of areas" Labour would have to improve before his party would support the budget.

He said it failed to meet the needs of higher education, local councils, and council taxpayers. More money per head went to English universities than their Welsh counterparts, he said, and Labour refused to recognise a funding gap.

Dr Lloyd said Labour had failed to tackle health waiting lists, failed to fund community hospitals, and every local health board and trust was in debt.

Conservative AM Glyn Davies said his party would study the budget closely, adding: "We know from bitter experience that as far as Labour is concerned the devil is in the detail.

"The Labour assembly government has a track record of promising the earth but delivering very little.

"This budget must deliver value for money, and in particular has to be fair to council tax payers and higher education institutions in Wales," said Mr Davies.