The 2010/2011 budget was passed at a marathon council meeting which lasted a total of 15 hours, taking councillors until 2.20am the following morning.
The budget has attracted heavy criticism for its series of £28.7m of cuts and the closure of council-owned care homes including Saint Michael's View in Retford.
Retford councillor Mike Quigley has defended the choices made with the budget, saying the decisions made were indicative of the financial climate.
"The budget is the cabinet's budget which we all supported," he said.
"We've got some hard decisions to make over the coming years.
"I don't think Notts County Council is any different to other councils in that we've got tough challenges ahead."
Cabinet member for adult social care, Cllr Mel Shepherd, said the sell off would help the council invest millions to create 160 Extra Care places – an approach to care where people buy their own purpose built flats in care "villages" with 24-hour support.
He said the council would also be very careful when it had to choose potential care home buyers.
"We are looking for people who have got proven track records in the business," he said.
"We want them to see this as a long term investment. We are keen for long term buyers."
Before the meeting began, protestors gathered outside County Hall waving banners with slogans that included "Save Our Care Homes" and "Stop Victimising The Elderly".
The homes will be sold as going concerns and will have to remain care homes for at least three years.
Numerous politicians spoke from a podium to the crowd including Bassetlaw MP John Mann.
Mr Mann has previously branded the selling off of Saint Michael's a "disastrous" decision.
He said: "The council's decision to sell off care homes is particularly wrong, but in Saint Michael's it's not just the care home that is sold off, it's the service that goes with it.
"The private service won't provide that – there's no money in it.
"It's high-quality care and selling off Saint Michael's would be disastrous."
Labour councillors had previously argued the cuts have been avoided in their "alternative budget", which would have reduced cuts by increasing council tax.
Politicians discussed the rest of the budget, which included plans to axe 1,500 jobs over the next three years, late into the night.