The Estimates make no provision for a special pay rise for teachers, but there are substantial rises in funds for special needs pupils and initiatives to reduce disadvantage.
The Minister for Finance, Mr McCreevy, said the education Estimates covered only payments to teachers available under the Programme for Prosperity and Fairness (PPF).
While teaching unions are likely to be angry at this, the Minister for Education, Dr Woods, said overall education expenditure would rise by 12 per cent to £3.7 billion.
The biggest beneficiary will be the third-level and further education sector, where current and capital expenditure will rise by 18 per cent.
Money for schemes to alleviate disadvantage will rise by 355 per cent, from £3.4 million to £15.6 million. Dr Woods, has said widening access to third level for poorer students is one of his main aims.
He has set up a committee, chaired by Dr Cormac Macnamara, to suggest new policies to widen access.
The main block of current expenditure for third-level colleges will rise by 14 per cent, from £352 million to £402 million.
Student groups are also likely to focus on the increased funding for third-level grants, with university grants rising by 10 per cent to £52 million. The Department is studying ways to improve the grant system.
In line with recent years, one of the biggest increases in funding at post-primary level relates to school buildings. Many of these are dilapidated and in need of repair and the Department has responded with a 21 per cent rise in expenditure to £125 million.
The exam system - run by the Department's Athlone office - continues to cost the taxpayer. This year expenditure will rise by 24 per cent to £23 million. It follows a recent recommendation in an internal Department of Education report for the exam service to be outsourced to a specialist body.
The per capita grant at second level rises from £192 to £202 per pupil. This was described as "nothing dramatic" by the Joint Managerial Body last night, which represents the majority of school managers. The grant at primary level will rise by £9 to £80.
The biggest change in that sector was the 110 per cent rise in funding for special needs assistants in national schools. Campaigners for special needs pupils have been looking for this for years, as these children often need assistance to benefit fully from classroom teaching.
Also part of this change is the 114 per cent rise in funding to £7.4 million for a national psychological service which intends to deal with special needs pupils and give them quick assessments.
The primary sector also gets a 15 per cent rise in funds for buildings and equipment in national schools. The allocation for special schools with children in care rises by 100 per cent to £9.5 million.
Expenditure on youth organisations will rise by 63 per cent to £12.2 million.