That seems to be Scottish Government's intention as outlined in a new letter to local authorities.
http://www.scotland.gov.uk/Resource/Doc/1070/0109280.pdf
Edinburgh would get an estimated £686,000 for Cycling, Walking & Safer Streets (details for all council in appendix I - p14).
There had been concerns for this funding as it wasn't mentioned in the budget, which led to significant pressure from Spokes (details), TRANSform Scotland and others.