THE IMPACT OF BUDGETARY AND FINANCIAL UTILIZATION ON EDUCATION

ABSTRACT This study investigates the impact of budgetary allocation and financial utilization on the educational outcomes in Eredo LCDA, with a focus on two key research questions: (1) How effective is budgetary utilization and allocation in achieving the intended goals of the educational sector? and (2) What is the impact of budgetary utilization on educational outcomes in schools? Using a quantitative approach, the study employed a Chi-square analysis to test two hypotheses related to budget inefficiencies and their effects on educational goals and student performance. A structured questionnaire was administered to school administrators, teachers, and local education officials in Eredo LCDA. The results revealed a significant relationship between inefficient budget allocation and the inability to achieve educational goals, with 239.39 as the Chi-square statistic, far exceeding the critical value of 40.113. Furthermore, the study found that ineffective financial utilization negatively impacted educational outcomes, including the quality of teaching resources, student performance, and overall school infrastructure. Proper financial management, on the other hand, was linked to improvements in teacher motivation and student academic performance. The study concludes that inefficient financial management significantly hinders educational progress, and recommends reforms in budget planning, increased financial transparency, and targeted investment in teaching resources and school infrastructure to improve educational outcomes in the region.