The cash will go to Strathclyde Passenger Transport (SPT) and WESTRANS, a regional transport partnership responsible for private and public transport as well as transport infrastructure in the west of Scotland. It will be used to improve the bus network and to make cycling and walking more attractive.
Transport minister Nicol Stephen said: "We can help build strong communities and tackle poverty by connecting people to each other through better transport links. The key to this is joint working between local authorities and transport providers."
SPT will receive £3 million to fund projects that began last year, including dial-a-bus and bus information services. The remaining £3.7 million will be spent under the joint guidance of WESTRANS and SPT.