This document discusses using simulation techniques to estimate education costs and budgets. It provides examples of how simulation models can be used to: 1. Estimate needs for personnel, school buildings, teaching materials, and other resources over multiple years based on student enrollment projections and policy parameters. 2. Help formulate education policies and compare scenarios by examining implications of different options. 3. Contribute to medium-term action planning by forecasting the pedagogical, physical, and financial implications of education objectives. 4. Facilitate setting multi-year budgets by specifying new achievements and costs, and programming recurrent and capital expenditures.