Manila: The Philippine government will spend 200 billion pesos ($17.6 billion) this fiscal year to upgrade the country's education system, President Gloria Arroyo said.
"Due to reforms we have instituted in our tax collection, whe have allotted a bigger budget for social programmes than to the money we plan to spend for our country's other financial obligations," Arroyo said in Filipino in a speech she delivered in Malacanang Palace.
According to the president, the Philippines has allocated 200 billion pesos - the biggest ever allocation - for education programmes this year.
"The bulk of our programmed 1.227-trillion national budget will go to education," she said in her "budget message event" on education dubbed "Forward with Education - Fight Poverty".
Arroyo gave the speech before an audience of over a thousand students, teachers, parents, and education officials.
The Philippine leader said education reforms are her administration's priority alongside economy and environment.
"The education sector is taking a front seat in the 2008 budget, securing the largest allocation in the 1.227-trillion pesos national outlay," she said.
Arroyo said her government aims at upgrading the quality of education as well as making learning more accessible to Filipinos, saying it is the best weapon to alleviate poverty.
In this year's national budget, apart from education, public works gets an outlay of 83.5 billion pesos, defence 56 billion pesos and agriculture 21.7 billion pesos.
By Gilbert Felongco, Correspondent