The SNP relied on pro-independence allies to prevent their Budget falling at the first hurdle.
Holyrood backed the government’s £30billion spending plans after Finance Secretary Derek Mackay struck a last-minute deal with the Scottish Greens.
Patrick Harvie, the party’s co-convener, sided with the SNP administration in exchange for an extra £160million for local authorities.
But he faced criticism from opposition parties for not extracting enough from Mr Mackay.
Mr Harvie described the deal as the “biggest Budget concession in Holyrood’s history” as he criticised other MSPs for refusing to put Scotland’s interests ahead of their parties.
He said: “We remain critical of many elements of this Budget, and in particular it is clear that the SNP’s timid position on tax policy cannot last.
“But the substantial shift from Scottish ministers on local council funding must be welcomed, and merits our support.”
The deal will mean councils receiving an extra £160million compared with what was initially promised under Mr Mackay’s draft spending plans for 2017-18.
That includes £130million from central reserves, as well as nearly £30million from freezing the higher rate income tax threshold.
Referring to figures sourced from the Scottish Parliament Information Service, Scottish Labour said local government still faced a £169million cut.
Kezia Dugdale, the Scottish Labour leader, said the Greens had “settled to be the fig leaf the Nationalists so desperately want and desperately need”.
“The tax changes announced today constitute £29million of new money,” she added.
“That’s one tenth of the money we need to stop the cuts, and it’s one thirtieth of the amount of money the Greens’ manifesto said was needed to stop the cuts.”
As part of the deal, more higher rate taxpayers will have to pay more than their neighbours in England.
Murdo Fraser, the Scottish Conservatives’ finance spokesman, said Mr Mackay had lurched to the left to “embrace the anti-growth, anti-business agenda of the Greens”.
“What a pity, what a tragedy for Scotland, that he chose to throw in his lot with the lentil-munching, sandal-wearing watermelons on that side of the chamber,” he said.
Willie Rennie, the Scottish Liberal Democrats’ leader, said: “Instead of delivering a bold and green country the Green Party have simply helped the SNP deliver a grey and timorous budget.”
Mr Mackay said the government had “listened and acted” to the “constructive approach” taken by the Greens.
He said: “At a time of significant challenge in our economy, this is a Budget that will support jobs and lay the foundations for future growth.
“The Budget provides a strong settlement for local government, including additional funding for educational attainment, increased capital resources and increased revenues from council tax.”
A final vote on the budget will be held later this month.