7.2 Functional classification: COFOG Classification of · PDF file7.2 Functional classification: COFOG Classification of the Functions of Government ... COFOG Introduction Functional

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7.2 Functional classification: COFOG

Classification of the Functions of Government

Introduction

GFS training course 2012

GFS course 2012: Chapter 7.2 2

COFOG Introduction

COFOG:

the categorisation of government expenditure

activities to different functions


COFOG Introduction

Functional classification (1999) used by:

United Nations

Eurostat

OECD

IMF

countries


COFOG Introduction

The structure of COFOG:

Level 1: Divisions (two-digit)

Level 2: Groups (three-digit)

Level 3: Classes (four-digit)


COFOG Introduction

Improving data availability on government

expenditure - priority of the Economic Policy

Committee


COFOG Introduction

Eurostat Task Force on COFOG created to:

- improve the coverage for COFOG level 1

- collect data for COFOG level 2

- compile a Manual on COFOG classification


COFOG level 2 implementation

Transmission of level 1 (from 1995) compulsory -

Table 11

Transmission of level 2 voluntary, for now. Some

aspects will be made compulsory in ESA10

transmission programme.

24 MSs providing data, others either delivering

partial datasets or planning to.


COFOG classification

Structure of COFOG – Divisions (level 1)

01 - General public services

02 - Defence

03 - Public order and safety

04 - Economic affairs

05 - Environmental protection



Structure of COFOG – Divisions cont

06 - Housing and community amenities

07 - Health

08 - Recreation, culture and religion

09 - Education

10 - Social protection



Structure of COFOG:

Each division (level 1) is divided into groups (level 2)

Each group (level 2) is divided into classes (level 3)



Division 01 – General public services - government expenditure on:

(1.1) executive and legislative organs, financial and fiscal affairs, external affairs;

(1.2) foreign economic aid;

(1.3) general services;

(1.4) basic research;

(1.5) research and development (R&D);

(1.6) other general public services;

(1.7) public debt transactions;

(1.8) transfers between levels of government not allocated to functions



Division 02 – Defence - government expenditure on:

(2.1) military defence;

(2.2) civil defence;

(2.3) foreign military aid;

(2.4) R&D

(2.5) other



Division 03 – Public order and safety

(3.1) police services;

(3.2) fire- protection services;

(3.3) law courts;

(3.4) prisons;

(3.5) R&D;

(3.6) other public order and safety



Division 04 – Economic affairs

(4.1) general economic, commercial and labour affairs;

(4.2) agriculture, forestry, fishing and hunting;

(4.3) fuel and energy;

(4.4) mining, manufacturing and construction;

(4.5) transport;

(4.6) communication;

(4.7) other industries;

(4.8) R&D for economic affairs;

(4.9) other economic affairs



Division 05 – Environmental protection

(5.1) waste management;

(5.2) waste water management;

(5.3) pollution abatement;

(5.4) protection of biodiversity and landscape;

(5.5) R&D;

(5.6) other environmental protection



Division 06 – Housing and community amenities

(6.1) housing development;

(6.2) community development;

(6.3) water supply;

(6.4) street lighting;

(6.5) R&D;

(6.6) other housing and community



Division 07 – Health

(7.1) medical products, appliances and equipment;

(7.2) outpatient services;

(7.3) hospital services;

(7.4) public health services;

(7.5) R&D;

(7.6) other health expenditure



Division 08 – Recreation, culture and religion

(8.1) recreation and sporting services;

(8.2) cultural services;

(8.3) broadcasting and publishing services;

(8.4) religious and other community services;

(8.5) R&D

(8.6) other



Division 09 – Education

(9.1) pre-primary (ISCED level 0) and primary (ISCED level 1)

(9.2) secondary (ISCED levels 2 and 3) education

(9.3) post-secondary non-tertiary (ISCED level 4) education

(9.4) tertiary ( ISCED level 5 and 6) education

(9.5) education not definable by level

(9.6) Subsidiary services to Education

(9.7) R&D

(9.8) other education expenditure



Division 10 – Social protection

(10.1) sickness and disability

(10.2) old age

(10.3) survivors

(10.4) family and children

(10.5) unemployment

(10.6) housing

(10.7) social exclusion

(10.8) R&D

(10.9) other social protection


Links with other classification systems

1) ESSPROS

European System of Integrated Social Protection

Statistics

2) ISCED

International Standard Classification of Education


ESSPROS

ESSPROS definitions, conventions and accounting rules

are mostly harmonised with national accounts


Differences between ESSPROS and national accounts

Differences consist of:

the scope of social protection

statistical units

the social benefits in cash and in kind

recording


Differences between ESSPROS and national accounts

COFOG and ESSPROS

Accrual accounting is not applied in ESSPROS


Differences between COFOG and ISCED

• Time of recording: accrual recording for NA, cash

recording for ISCED

• Depreciation is not recorded in capital expenditure in

ISCED.

• National accounts show formal and non-formal

education, only formal education recorded in ISCED

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COFOG

Case Study 7.2

26 GFS course 2012: Chapter 7.2

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