In many developing countries, one of the major challenges facing public institutions is the efficient and equitable reallocation of public resources. This paper addresses the issue of how public resources are employed efficiently and equitably in Zambia as a case study. First of all, the study examines the extent to which public resources for education are used efficiently, particularly as a linkage with educational outputs, in comparison to other sub-Saharan African countries. Secondly, because teachers' salaries constitute a large share of public spending on education and teacher themselves are very important inputs in the delivery of education services, the study investigates the degree to which public resources are disturbed efficiently and equitably by evaluating teacher allocation.