Mr Tung earmarked more than $6 billion to improve the quality of education and promised spending would continue to rise over the next decade.
Teaching professionals welcomed the news, saying it showed the Government was determined to upgrade human capital despite the economic downturn.
A total of $5 billion will be set aside to subsidise people who want to continue their education and for training programmes.
Starting from next year, the Government will ease the workload of secondary school teachers by providing an extra $200 million a year for teaching and administration assistants.
Each public sector secondary school now receives $300,000 for this purpose; this will be increased to $450,000 from next year. The amount given to each primary school will remain at $550,000 a year.
About $400 million will be spent on extending the native English-speaking teachers scheme to all 800 primary schools over the next two or three years.