The Scottish government is to be given the power to issue its own bonds, the UK government has confirmed.
UK ministers said the Scottish government wanted direct access to capital markets
The move will give the Holyrood administration an additional source of financing when borrowing powers are implemented from 2015.
Chancellor George Osborne called it "a historic day for Scotland".
But the Scottish government described it as "nothing new", and said only independence would give Scotland full control of its economy and finances.
Under the Scotland Act 2012, the Scottish government will be able to borrow up to £2.2bn for major capital projects such as transport infrastructure, hospitals and schools.
The act, which implemented many of the recommendations of the Calman Commission on Scottish Devolution, will come into force in 2015 and will allow the Scottish government to borrow through the UK's National Loans Fund and commercial banks.
In addition to the new borrowing powers, the Scottish government will also be able to set a Scottish income tax rate.
The UK government consulted on whether these powers should be extended to allow bond issuance, as part of the total £2.2bn borrowing limit.
It said adding the power to issue bonds would give Holyrood the ability to directly access capital markets, which it claimed Scottish ministers had requested.
Bonds enable the borrower to obtain funds from an investor for a fixed period of time for a pre-determined interest rate.
However, Treasury analysis has suggested that issuing bonds is likely to be more expensive for Scotland than accessing the National Loans Fund.
The majority of respondents to the Treasury's consultation said they believed that "bonds issued by the Scottish government would likely translate into a cost of borrowing significantly above that enjoyed by the UK government."
The consultation, which sought views from the Scottish government and investors about Scottish bonds, said Scotland might have to pay between 0.3% and 1.2% more than the British government to borrow from financial markets.
Existing funding arrangements charge Scotland only about 0.2% extra.
Chief Secretary to the Treasury Danny Alexander said: "This is a historic announcement, demonstrating once again how Scotland can grow and prosper within the UK.
"From 2015, Scotland will be able to borrow up to £2.2bn to invest in its hospitals, roads and other capital projects. In addition to having access to the National Loans Fund, our decision today means that the Scottish government can directly issue its own debt.
"It will of course be up to the Scottish government to manage their borrowing, but this is complemented by the tax powers in the Scotland Act providing the Scottish government with an independent source of revenue to support borrowing costs."
Mr Osborne said: "Being able to issue its own bonds gives Scotland new powers and new responsibility, within the security of the UK.
"Alongside the considerable new tax and spending powers we have already given in the Scotland Act, it is further evidence of why being part of the UK gives Scotland the best of both worlds."
But a spokesman for the Scottish government responded: "This is nothing new and was promised as part of the Scotland Bill in 2012.
"Instead of having the powers to borrow that were needed during the recession the UK government is instead responsible for 26% cuts in capital spending.
"This is simply too little too late. Without the full fiscal powers of independence the ability of any Scottish government to borrow to boost investment in infrastructure will continue to be constrained by arbitrary limits imposed from outside Scotland.
"Under independence, we would take our own decisions on public finances that are best suited to Scottish circumstances and priorities."
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