Scotland's Finance Secretary, John Swinney, claims jobs and economic growth will be at the heart of the draft budget he'll deliver to MSPs today.
There's speculation he'll end the pay freeze on public sector wages for those earning more than £21,000 a year.
The Public and Commercial Services union have called the freeze 'massively unfair' and will lobby outside Holyrood.
Scotland's budget is expected to fall by 11% between 2010 - 11 and 2014 - 15. Capital budgets, used to fund big infrastructure projects, look set to fall by a third.
Mr Swinney's described it as 'the toughest financial settlement from Westmister since devolution.
Opposition parties are calling for more investment in housing and further education.
Labour finance spokesman Ken MacIntosh said:
– Ken MacIntosh
"John Swinney needs to stop hiding behind Westminster or trying to blame our local authorities and start taking responsibility for his own budget decisions."
John Swinney is expected to announce further tax relief for small businesses in today's Scottish Budget. Ken Wilkinson runs Borders Mobility in Selkirk and says it is vital that taxes are lowered for local shops.
Borders Chamber of Commerce director Bruce Simpson says the budget must do more to help rural areas. He says there needs to be an emphasis on infrastructure, particularly railway links, roads and communication, through providing better broadband.