The Scottish Government will urge MSPs to vote for a budget later today that it says will help people most impacted by the cost-of-living crisis.
Deputy First Minister John Swinney said his 2023/24 proposals would also create jobs and help Scotland reach its climate targets.
They include an Income Tax rise for everyone earning more than £43,662.
Mr Swinney called on MSPs to back the decision to channel "limited resources" where they are needed most.
The BBC reports that opposition parties have criticised the plans, but the deputy first minister said he hoped they would acknowledge the challenging economic conditions.
The rate at which prices are rising has dropped back slightly, but inflation remains near a 40-year high.
Interest rate
In response, the Bank of England increased the interest rate to 4% earlier this month - the highest level for 14 years.
Scotland's Income Tax changes will see both the higher and top rates increased by 1p, rising to 42p and 47p respectively.
The hikes are a significant departure from the SNP's manifesto aim not to alter Income Tax rates for the duration of this parliament.
Mr Swinney previously said that the changes will raise a total of £553million in the next year when taken alongside changes to other taxes including Land and Buildings Transaction Tax - the Scottish equivalent of stamp duty.
Ahead of the vote, Mr Swinney highlighted an increase in the Scottish Child Payment and a £5.2billion investment in Social Security, with benefits due to rise by 10.1% from April.
Confirmed
The chancellor had already confirmed that benefits and pensions paid by the UK Government would also rise by that figure.
The deputy first minister also said his Income Tax proposals would result in record funding of more than £19billion for health and social care.
Mr Swinney added: "The budget rejects austerity and provides relief for those in most need."
He also pledged to support the country's 32 local authorities.
But the Scottish Conservatives accused the SNP/Green government of presiding over "savage cuts", despite high Income rates and the largest block grants since devolution began.
Finance spokeswoman Liz Smith said: "This has particularly hit councils, underfunded and neglected by Holyrood for years, with a devastating impact for services on which we all rely."
FTSE 100
The UK's top share index, the FTSE 100, was down 20 points at 7,993 shortly after opening this morning, following yesterday's nine-point gain.
Brent crude futures were 0.8% lower at $83.40 a barrel.
Companies reporting today
- Full-year results: Antofagasta, HSBC, InterContinental Hotels Group, Smith & Nephew