WORK on a delayed Ayrshire bypass will begin next year as part of a £1 billion package of funding for roads and transport projects, John Swinney has announced.

The finance secretary said funding would be made available to commence construction of the long awaited Dalry bypass, which was originally scheduled to begin in 2012.

The £28 million project involves the construction of a new off-line bypass to the east of the town of Dalry and associated junctions to connect to the existing A737 trunk road.

The development is expected to boost economic and employment opportunities in the area by cutting journey times and reducing congestion for motorists and businesses along the A737 route.

In addition, the Dalry Bypass will help separate local from strategic traffic and lead to improved safety for both rural road users and communities.

Mr Swinney also announced that improvements would get underway in 2016-17 to relieve bottlenecks around the Haudagain roundabout in Aberdeen, as part of ongoing works on the £745m Aberdeen Western Peripheral Route.

The roundabout is a notorious gridlock blackspot in the city, causing significant tailbacks and delays to traffic on the approach roads.

Work on the roundabout was originally set to begin once the AWPR was complete, currently scheduled for the end of 2017.

However, it questions were raised in November over how the Scottish Government would fund the project, which is designed to create a new north-south artery on the outskirts of Aberdeen to bypass the city and reduce journey times.

Mr Swinney had tried to keep the project off the government’s books by classifying it as a private sector development, but changes to EU rules have made that impossible.

However, he has insisted that the flagship project will be delivered "on time and on budget".

The electrification of the Edinburgh-Glasgow rail line will be completed in 2016-17 as the Edinburgh-Glasgow Improvement Programme (EGIP) continues, and Mr Swinney committed during the Budget announcement to deliver the new Forth Replacement Crossing by December 2016.

It comes as Holyrood's infrastructure and capital investment committee agreed to hold an inquiry into to circumstances surrounding a defect discovered the Forth Road Bridge, which forced the complete closure of the Edinburgh-Fife crossing two weeks ago.

The Scottish Government will also invest £130 million in digital infrastructure as part of its target to to help towards ensure 95 per cent of premises in Scotland have access to high-speed broadband by 2017.

Infrastructure Secretary Keith Brown said: “Transport infrastructure is also a critical part of this Budget. There will be over £1bn invested in roads and transport projects, including the Aberdeen Western Peripheral Route and the electrification of the Glasgow-Edinburgh rail line.

“Alongside that of course is the completion of the new Forth Replacement Crossing. The current temporary closure of the Forth Road Bridge for essential repairs has served to highlight the need for the new Crossing and I am pleased to say this Budget will allow it to progress towards completion in line with the latest timescales previously advised.

“Digital connectivity is another key plank of our strategy to harness the opportunities of digital across all aspects of Scottish life and we are investing £130 million to help meet our 95 per cent next generation broadband target.

“We have long placed considerable emphasis on public sector investment in infrastructure to stimulate economic recovery and that is what has driven much of the post-recession growth in Scotland. This Budget supports that continued growth through improving infrastructure and investing in housing to ensure all Scots can benefit from these opportunities.”