Union leaders have hit out at the "woefully inadequate" pay rise for public sector workers in the Finance Secretary's budget.
John Swinney ended the two-year freeze on salaries by announcing most employees in the Government and NHS would receive a 1% increase in their wages in 2013-14.
Trade unions had urged the Finance Secretary to end the pay freeze, but after his budget they insisted public sector workers deserve more.
Lynn Henderson, of the Public and Commercial Services union which represents 30,000 civil and public servants in Scotland, said: "The 1% cap on pay increases announced by Mr Swinney is the same 1% cap announced by George Osborne with a tartan cover over it. This is woefully inadequate to redress the lost income and hardship our members have suffered after two years of a 0% pay freeze."
Unison Scottish secretary Mike Kirby said there is "no guarantee" that local government workers - the largest group of public sector workers - would receive any increase. This will only happen if councils are given the funds to increase workers' salaries, he said.
Grahame Smith, general secretary of the Scottish Trades Union Congress, said the rise represents a "third year of significant real-terms wage cuts for hundreds of thousands of workers" because of inflation. "It is disappointing that Mr Swinney has followed George Osborne's public sector pay policy almost to the letter."
Student leaders criticised the extra £17 million for further education. NUS Scotland said the budget for colleges will still fall by about £34 million, compared with this year. Robin Parker, president of the student body, said: "These proposals aren't good enough and more needs to be done for college students across Scotland between now and the final budget."
The spending plans outlined by Mr Swinney will "still see cuts to colleges worth tens of millions of pounds". He said: "At a time of incredibly high youth unemployment and in a budget that was billed as focusing on growth, that's simply unjustifiable."
The reaction from business leaders was more mixed. CBI Scotland assistant director David Lonsdale said there are "a number of positive announcements of construction, tourism, skills and incentives for firms to recruit young people", but the budget is a "missed opportunity" by Mr Swinney to "signal a fresh direction on public services reform" by contracting out a much wider range of public services to private companies.
Liz Cameron, chief executive of Scottish Chambers of Commerce, welcomed the continuing focus on capital investment, saying: "We believe that this will achieve both short-term advantage in terms of delivering a boost to the construction sector and also benefit the Scottish economy in the longer term."
