The health service is the main beneficiary of the Northern Ireland draft budget announced yesterday.

The cash injection of £300 million sterling (€476 million) will push annual spending on health above £3 billion for the first time.

The extra money will be poured into tackling the crisis of hospital waiting lists - currently among the longest in Europe - and investment in intermediate and primary care.

Announcing the draft proposals to the Northern Ireland Assembly, Mr Sean Farren, the finance minister, described his budget as radical and reforming.

"We are doing more than simply maintaining existing services. In key areas we are developing new services," he said.

The budget sets out for the first time a three-year spending plan for each department.

The health service will see a rise of 40 per cent in expenditure to £3.4 billion by 2006.

"In our discussions in the Executive there was clear recognition of the very significant demands on the health service at this time," said Mr Farren.

"This will help to free up acute hospital beds, easing the pressure in the acute sector," he added.

But the extra money announced in today's draft budget will not be used to address Northern Ireland's infrastructure problems.

Instead, new methods of financing currently being considered under the re-investment and reform initiative (RRI) announced in May will be used at a later date to tackle the province's crumbling water and sewerage system.

Aside from health, other beneficiaries include:

Agriculture and Rural Development will receive £255.8 million, an increased allocation of 13 per cent, to help implement its vision strategy for the future of farming.

Culture, Arts and Leisure will receive £96.6 million - an increase of 9.9 per cent to help implement sports strategy, including safer sports grounds.

Education will see expenditure rise to £1.528 billion - an increase of 6.6 per cent.

More funding to improve schools will be made available from the improved borrowing power brought about by the re-investment and reform initiative.

Employment and Learning will receive £669.8 million in 2003/4 - an increase of 6.2 per cent.

The allocation will enable the Department to enhance its student support programme by increasing the value of grants and the numbers of those eligible.

Enterprise Trade and Investment: instead of being set a fixed budget for each year, the plans will be set a high and low expenditure range, which will depend on the level of inward investment. It means that extra millions will be made available if Invest NI attract major projects to the province.

Environment will receive £127 million, an increase of 10 per cent, to help take forward EC directives on waste management improvements.

Regional Development will be allocated £591.2 million an increase of 4.3 per cent but the budget assumes that the bulk of the department's capital requirements will be met by RRI.

Social Development will be provided with £569.5 million, an rise of 4.2 per cent.

Office of First and Deputy First Minister will receive £38.6 million in 2003/4, an increase of 14.5. per cent to fund the review of public administration and establish the post of Children's Commissioner. - (PA)