There have been calls for Westminster to take back welfare powers to break the impasse – a move for which Downing Street has little appetite.
In his Budget speech, the Chancellor argued that the new Government was delivering "major devolution of tax and welfare powers" to Holyrood.
The three main Westminster parties unveiled plans last week to fast-track new welfare powers for the Scottish Parliament if the country votes No.
In terms of welfare powers specifically, Carmichael said: "It's a consultation process because universal credit is reserved, but it's not a veto".
She said ministers were improving the transparency and authority of their budgets now that Holyrood has substantial new tax and welfare powers worth around £15bn.
There is continuing backwash from the 2014 independence referendum, churned up the newly emerging questions about new taxation and welfare powers, and nagging questions about the SNP's dominance.
The Scottish government has again called for billions of pounds of extra tax and welfare powers as it opened up a fresh conflict with the Tories at Westminster.
In a rebuke to both George Osborne and Iain Duncan Smith, the Scottish First Minister said her government would use its newly devolved welfare powers to abolish the bedroom tax and replace the "discredited" Work Programme.
A summit between Cameron and Nicola Sturgeon in Edinburgh on Friday was described by the Scottish first minister as "constructive and businesslike" after the prime minister confirmed he would consider additional proposals to beef up Holyrood's tax and welfare powers.
Under the plan, which was first signalled by Mr Osborne at the weekend, details of fresh devolution of tax and welfare powers would be agreed by late November and legislation drafted next January.
Chosen by David Cameron to lead the newly formed Scotland Devolution Commission, the Glaswegian grandee was put in charge of establishing new tax, spending and welfare powers north of the border.
