Edinburgh has received an extra £3.5m pledge from the Scottish Government because it is the capital city.
Finance Secretary John Swinney announced the new funding as he outlined the Scottish Government's budget.
It is the first time the city's special role has been recognised, however it is only about a tenth of the £33m Edinburgh City Council asked for.
The money is to be spent on events such as the winter and summer festivals.
The money is in addition to £877.7m allocated to cover the city in 2009/10.
The amount will be more than last year's figure of £884.2m once two substantial grants come through to cover private sector housing and transfer of management development funding.
The move follows a detailed submission on the case for Edinburgh to the Scottish Government on 25 September.
Jenny Dawe, Edinburgh City Council leader, said: "I welcome the Scottish Government's recognition of the unique pressures that Edinburgh incurs as the capital city for Scotland and the particular impact this has on the council.
"Investing in Edinburgh to promote Scotland is the best way to maximise future prosperity and well-being for the whole of Scotland."
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