The NHS in Wales is set to get a spending boost of £240 million, after the Welsh Government published details of its draft budget for 2017/18.
Also announced by Finance Secretary Mark Drakeford is £10m for a pilot scheme to provide 30 hours of free childcare for three and four-year-olds.
Elsewhere, there are cuts in education, local government and community projects.
Professor Drakeford said: “This is a budget to take Wales forward. It is about providing stability and ambition in uncertain times.
“We continue to face ongoing cuts to our budget as a result of decisions made by the UK Government. We cannot hide from the challenges this presents.
“We are facing a period which the Institute for Fiscal Studies calls an extraordinary 11 or more years of retrenchment in public service spending.
“This is also a budget which has been developed against the backdrop of the outcome of the EU referendum and the uncertain future of vital European funding streams. Our plans have been shaped by these unprecedented challenges.”
The £14.95bn budget has been announced after Labour struck a deal with Plaid Cymru to enable it to pass, because Labour does not have a majority in the Senedd.
As well as a £90m cut in education spending, the £20m Schools Challenge Cymru scheme is ending, although £500m will be available for school improvements through the Welsh Government’s 21st Century school programme.
The £30m a year Communities First project has also been scrapped, which had been previously announced, while the family courts advisory service CAFCASS gets a £10m cut.
Councils have also had their revenue budgets cut in real terms, although local authorities have had a large increase in the amount of funds available for one-off capital projects.
Other spending highlights include £111m for apprenticeships and traineeships, £900m for the M4 relief road, subject to the outcome of the public inquiry; £369m towards a South Wales Metro and funding to take forward proposals for a North Wales Metro; and £300m for improvements to motorways and trunk roads.
The deal between Labour and Plaid Cymru amounts to around £119m worth of spending. This includes £30m extra for higher and further education, £20m extra for mental health and £5m for the Welsh language.
Plaid Cymru’s Shadow Cabinet Member for Finance and Economy, Adam Price AM, said: “This budget represents a massive £119m investment package that will strengthen the NHS, boost the economy, improve educational standards and deliver better public services. Plaid Cymru’s priority has always been to protect the interests of the Wales, and this budget deal will deliver benefits for every single person.”
Welsh Conservative leader Andrew RT Davies said Labour’s programme for government was “falling apart at the seams”.
He said: “During the election campaign the First Minister was clear that for every new commitment there would have to be a cut.
“They were fine words, yet the spiralling costs of his manifesto commitments now makes it almost impossible to tell where the extra money is going to come from.
“We have a pile of uncosted commitments and a ‘Programme for Government’ that appears to be falling apart at the seams, within weeks.
“People and communities across Wales need to have confidence that these commitments can be funded and delivered on budget – but sadly that detail just isn’t there.
“They need to show us the money, and come clean over where the cuts are going to fall.”
I have a feeling that the main problem with Welsh health care is not shortage of money. It is the organisation Health Boards themselves and the people who run them that are the cause of health provision being worse than it once was in wales.
I remain unimpressed with a Welsh Government who is happy to funnel more money into a failing system without any analysis of the systemic faults that are causing suffering for thousands of Welsh people. As long as the Welsh Nationalists continue to prop up labour instead of properly scrutinising their actions this sorry state of affairs will continue.