The assembly government claims that cuts have hit its budget harder than other devolved administrations
AMs have backed the Welsh Assembly Government's draft budget.
With a £500m cut to Wales' block grant from Westminster next year, ministers say they have been dealt the toughest funding settlement since devolution.
Spending plans for the next three years contain a 7.6% real-terms cut in health.
Conservative calls for NHS funding to continue to rise in line with inflation failed to win support during a vote in the Senedd.
Budget Minister Jane Hutt said the UK government's comprehensive spending review had left Wales worse off than all the devolved administrations.
The overall Welsh grant will be £14.5bn in 2011-12 - a cash cut of 3.3% on this financial year.
Ms Hutt said the Labour-Plaid Cymru coalition was "clear about its priorities".
Appealing for the support of opposition AMs, she said: "This budget is responsible, it is fair, it is progressive, so why not join us in taking this budget forward?
"It's a fair, honest, progressive budget for the people of Wales."
'Too deep, too fast'
Although the assembly government would play its part in tackling Britain's deficit, she claimed public spending cuts by the UK government were "too deep and too fast".
A Tory amendment calling for real-terms protection for the health and social services budgets failed to win enough support.
Opposition leader Nick Bourne said many Whitehall departments were facing bigger cuts than those facing Wales.
He said the assembly government's plans would take £1bn out of the health service over the next three years.
Plaid Cymru AM Chris Franks said the Tory pledge on health funding would deliver a "hammer blow to spending on new school buildings and education".
The Liberal Democrats called for a "pupil premium" that would target funding at disadvantaged children, partly paid for by scrapping the subsidised north-south air link and by ending ring-fenced grants for local councils.
Lib Dem AM Peter Black said the assembly government had "failed" the NHS while the Tories were in "denial".
The draft budget was carried 37 votes to nine, with five abstentions.
AMs will vote on a final budget next month.
