Education spending will rise by 4.3 per cent by 2010/11. This will pay for the building and refurbishing of more than 100 schools, including eight special needs schools.
The executive has also signed up to the UK government's target of halving child poverty by 2010, and eradicating it by 2020, bringing the province into line with the other administrations in the UK.
Alex Tennant, head of policy and research at Save the Children, said: "These commitments to end child poverty are very welcome - and very timely. We have been very concerned at the levels of child poverty in Northern Ireland."
The executive has also set a target to reduce the number of abused or neglected children on the Child Protection Register or in care by 20 per cent by 2013.
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