Around 20,000 jobs are to be cut from Northern Ireland's public sector following a political deal to safeguard power sharing.
The posts will go over the next four years after money was set aside in Stormont's budget for a voluntary exit scheme and freeze on recruitment.
The planned 20,000 jobs reduction represents 10% of the public sector workforce.
An extra £27 million has been set aside to mitigate the worst impact of welfare reform during the next financial year, finance minister Simon Hamilton said.
A dispute between Sinn Fein and the Democratic Unionists over the issue had caused deadlock in the devolved institutions.
A total of £40 million has been set aside for dealing with the past, which includes new mechanisms for investigating past violence, and building a united community.
Ministers have moved swiftly to agree a budget following last month's Stormont House Agreement after weeks of intensive talks between the five main parties hosted by the British and Irish Governments.
Mr Hamilton said: "In many respects, the most difficult decisions on public spending have yet to come.
"No one wants cuts, but I believe that in agreeing this budget we have done the right thing.
"We have accepted the realities facing us and have done what we can to protect and support what is most important to our people," he added.
