However, Sturgeon said the £ 20 million would be a “very good investment” as it would give the Scots “a chance to choose a better future”.
He blamed UK ministers for his government’s tough financial stance on policies such as Brexit, claiming that its decentralized budget had been cut by more than five per cent in real terms this year.
This contradicted the CFS’s projections, which indicate that the Scottish Government’s revenue budget will increase slightly in real terms over the next five years.
The SNP’s spending plans will allow it to invest billions in costly welfare payments, which are more generous than the rest of the UK, while reducing budgets in other areas.
“Definitive theft tax”
Liz Smith, the Scottish Conservatives’ finance spokeswoman, warned that freezing the higher income tax threshold for several years, as predicted by the SFC, would be the “definitive theft tax”.
He added: “By its very name, this tax rate is intended for people with higher incomes, but it is clear that those with average incomes will be dragged into this band and will be hit by the tax.
“In the midst of a cost-of-living crisis and high inflation, this huge tax hike is the last thing hundreds of thousands of struggling Scots need.”
A Scottish government spokeswoman said the SFC forecast did not represent a change in tax policy, but did not deny that the thresholds could be kept frozen.
He added: “The Scottish Government will continue to announce fiscal policy decisions annually as part of the Scottish budget.
“Our fiscal policy decisions continue to be based on our fair and progressive approach to taxation.”