The debate on school resources and educational outcomes has focused almost exclusively on spending levels. We extend this by analysing the relationship between student achievement and schools' budget allocations using panel data. Per‐pupil expenditure has no apparent link to improvement in students' standardised test scores. However, the allocation of the budget matters for student achievement in some grades. Ancillary teaching staff are linked to faster growth in numeracy and literacy in primary‐ and middle‐schools. Spending on experienced teachers is also important for writing achievement in the primary‐school years. On the whole, we find very little evidence of inefficient spending patterns.