The Finance Secretary is to focus on jobs and growth as he delivers his budget.
John Swinney will set out his spending plans for 2013-14 in the face of what he described as the toughest financial settlement from Westminster since devolution.
He has already pledged to make jobs and economic growth priority areas, and there has also been speculation that he will use the budget to end the freeze on public sector pay that was introduced two years ago.
Mr Swinney will unveil his draft budget to Holyrood on Thursday afternoon, setting out how he plans to spend £28.4 billion.
Adjusted for inflation, the Scottish budget from Westminster is expected to fall by about 11% between 2010-11 and 2014-15, according to a Scottish Government report.
Capital budgets, used to fund larger public infrastructure projects, will be reduced by 33% over the same period.
Mr Swinney said: "At a time when we face significant economic challenges, this Government is focused on jobs, economic growth, protecting public services and supporting Scotland's household budgets.
"The settlement we received in the UK spending review is the toughest since devolution. It will mean that, within four years of this UK Government taking office, we will see an 11% overall reduction to Scotland's budget and our capital budgets cut by a third.
"In delivering this budget, we must meet our commitments to the people of Scotland in the face of declining resources and without the full economic levers of a normal independent government at our disposal."
He insisted that the SNP administration will "continue to use the resources available to us, and the powers at our disposal to deliver growth and jobs".