Scotland's finance secretary Shona Robison has cancelled key projects and put a stop to spending to allow public sector pay deals to be struck.
Ms Robison has said money would only be spent if it was "essential" to meet legal requirements or prevent an economic crash.
The former deputy First Minister also admitted she is worried about the impact of the financial audit announced by chancellor Rachel Reeves, and has concerns over whether additional spending will cover the costs of a series of pay increases.
In a letter to the cabinet, Ms Robison said: “Any activity undertaken or commitment made that generates expenditure in 2024-25 must only proceed if it is truly essential and unavoidable.
"By unavoidable, I mean that the Scottish government would otherwise breach its legal obligations or fail to provide essential support to emergency situations or cause significant economic damage across Scotland."
Ministers fear that pay rises across Scotland will cost as much as £700m.
A proposed deal being considered by unions to avoid bin strikes is costing £77m alone, while negotiations remain ongoing with nurses and junior doctors.