Scotland's Labour leader has confirmed his party will vote in favour of the SNP's £33bn budget for the coming year when they come before parliament later.
The Scottish budget is close to being passed on the second attempt, after opposition parties won concessions from ministers in return for their support.
Iain Gray made the announcement before Wednesday's 1700 GMT vote that Labour MSPs would support the budget.
Labour and the Lib Dems, who joined the Greens to vote down the £33bn spending plans for the coming year a week ago, will now back them.
The move means all three major opposition parties will support Finance Secretary John Swinney's plans.
Ministers agreed to demands put forward by the two parties on boosting apprenticeships and the economy.
The SNP minority government clinched a vital deal with the Lib Dems to ensure the latest plans would go through.
Finance Secretary John Swinney said the budget would deliver economic recovery.
The move came after Labour, the Liberal Democrats and the Greens combined their votes to reject the budget last Wednesday at Holyrood.
The Conservatives supported the budget when it came before MSPs last week.
They said it had not done enough to see Scotland through the economic crisis.
Mr Swinney told MSPs: "We have demonstrated we have an overwhelming will to take the correct action to support public services and the Scottish economy.
What we are prepared to do to Calman, to the Treasury and to other bodies is to set out the unanswerable case that the Scottish Parliament needs to have the full range of financial and borrowing powers John SwinneyFinance Secretary Mr Gray said his party was prepared to come on board after claiming the SNP administration had pledged to introduce nearly 8,000 extra apprenticeships next year.
"We have demonstrated that, in the face of major challenges over the future of public spending, we can agree on a way ahead.
He added that they had also won an undertaking to explore the possibility of repeating that boost in 2010-11 in a special summit with employers.
"We have demonstrated that, when necessary, government and opposition can find common ground."
MSPs are now expected to vote for emergency fast-track measures allowing the Budget Bill to be decided in one day.
In the wake of last week's budget defeat, Labour agreed to come on board after the minority SNP administration pledged to introduce nearly 8,000 extra apprenticeships.
Following discussions with Mr Swinney, the Lib Dems were the first party to announce they would vote for the plans after it was agreed to take forward a strategy on boosting the economy.
And the Liberal Democrats said they would vote for the budget after ministers agreed to take forward a strategy to boost the economy.
Mr Swinney told BBC Radio Scotland's Good Morning Scotland programme: "After last Wednesday we engaged in fresh discussions with the political parties and the Lib Dems have come to us with a proposal about some strategic economic and financial co-operation with the government in a whole number of areas.
Earlier, MSPs approved emergency measures allow all three scrutiny stages of the Budget Bill to be taken in a day.
"The government has had a discussion and come to an agreement with the Lib Dems and we welcome that."
Under the deal, SNP ministers will make a submission to the Calman Commission - which is reviewing devolution - on borrowing powers for the Scottish Parliament.
Mr Swinney insisted it was not an embarrassing concession to co-operate with Calman - a forum the SNP has criticised because it ruled out discussing independence.
He explained: "What we are prepared to do to Calman, to the Treasury and to other bodies is to set out the unanswerable case, which I think has now become ever more obvious to people with issues such as the Forth replacement crossing, that the Scottish Parliament needs to have the full range of financial and borrowing powers which will allow us to manage our finances in a more effective and efficient way than we do."
Mr Swinney said the issue of borrowing powers was a critical one and he hoped progress could be made by putting the case to the Calman Commission.
The SNP/Lib Dem deal will also involve the creation of a finance sector jobs task force and a review of Scottish public spending.
The emergency parliamentary measures will allow MSPs to take all three scrutiny stages of the Budget Bill in a day, culminating in the final, crunch vote at 1700 GMT.
