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Shortfall - Definition & Meaning

A shortfall in education funding occurs when the available funds are insufficient to cover the expenses and financial obligations of an educational institution. This gap between revenue and expenditure can result from factors such as budget cuts, increased costs, or unanticipated financial challenges.
Shortfalls can impact the quality of education by limiting resources for instructional materials, teacher salaries, and facility maintenance. Addressing shortfalls often requires careful budget management, seeking additional funding sources, or making difficult decisions to prioritize spending in critical areas.

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