Councillor Shona Johnstone, vice-chairman of the Local Government Association's economy and transportprogramme board, said the announcement was a "step in the right direction".
He added that 70% of the current planned transport spending programme will be invested in public transport, helping to cut the number of single car journeys.
David Begg, a transport academic, who is convener of the city's transport committee, has well-advanced plans for an ambitious public-transport infrastructure programme.