Mr Michael said education would receive extra funding of£844m, councils and police forces£868m and health more than£1bn. Council tax for 19999/2000, however, may increase by three times the rate of inflation for some.
The Welsh budget was the last to be set by a Welsh secretary. From next year it will be done by the new national aAssembly.
Richard Livsey, leader of the Welsh Liberal Democrats, welcomed the settlement, 'suggesting some might think Christmas had come early', but criticised the council tax rise.