Educational expenditure is analyzed in policy formulation by examining how funds are allocated to various levels of education, such as primary, secondary, and higher education. This analysis considers factors like equity, access, and quality of education in relation to outcomes. Policymakers often use data metrics to assess the effectiveness of spending, ensuring resources align with educational goals and societal needs. Such evaluations facilitate informed decision-making about increasing investments, identifying inefficiencies, and promoting educational innovations, ultimately aiming to enhance student achievement and societal benefits.