Government at a Glance 2023

Annex E. Classification of the Functions of Government (COFOG)

Developed by the OECD, the Classification of the Functions of Government (COFOG) classifies government expenditure data from the System of National Accounts by the purpose for which the funds are used. As Table ‎E.1 illustrates, first-level COFOG splits expenditure data into ten “functional” groups or sub-sectors of expenditures (such as economic affairs, education and social protection), and second-level COFOG further splits each first-level group into up to nine sub-groups. First-level COFOG data are available for 34 out of the 38 OECD countries (according to time series availability), while second-level COFOG data are usually available for OECD European countries plus Australia, Colombia, Costa Rica, Israel and Japan.1

Table ‎E.1. First- and second-level COFOG

First-level	Second-level
General public services	Executive and legislative organs, financial and fiscal affairs, external affairs Foreign economic aid General services Basic research R&D general public services General public services n.e.c. Public debt transactions Transfers of a general character between different levels of government
Defence	Military defence Civil defence Foreign military aid R&D defence Defence n.e.c.
Public order and safety	Police services Fire-protection services Law courts Prisons R&D public order and safety Public order and safety n.e.c.
Economic affairs	General economic, commercial and labour affairs Agriculture, forestry, fishing and hunting Fuel and energy Mining, manufacturing and construction Transport Communication Other industries R&D economic affairs Economic affairs n.e.c.
Environmental protection	Waste management Waste water management Pollution abatement Protection of biodiversity and landscape R&D environmental protection Environmental protection n.e.c.
Housing and community amenities	Housing development Community development Water supply Street lighting R&D housing and community amenities Housing and community amenities n.e.c.
Health	Medical products, appliances and equipment Outpatient services Hospital services Public health services R&D health Health n.e.c.
Recreation, culture and religion	Recreational and sporting services Cultural services Broadcasting and publishing services Religious and other community services R&D recreation, culture and religion Recreation, culture and religion n.e.c.
Education	Pre-primary and primary education Secondary education Post-secondary non-tertiary education Tertiary education Education not definable by level Subsidiary services to education R&D education Education n.e.c.
Social protection	Sickness and disability Old age Survivors Family and children Unemployment Housing Social exclusion n.e.c. R&D social protection Social protection n.e.c

Note: n.e.c.: “not elsewhere classified”

Note

← 1.  First-level COFOG expenditures data are not available for Canada, Mexico, New Zealand and Türkiye. Until recently, second level COFOG data were available in some national statistical offices, but were not collected by international organisations. Moreover, the second-level COFOG data were not always fully comparable among countries because the SNA/UN guide and the International Monetary Fund Manual on Government Finance Statistics did not provide much practical information on the application of COFOG concepts. However, in 2005, Eurostat established a task force on guidance on the application of COFOG to national account expenditure data and to discuss the collection of second-level COFOG data for European countries. Second-level COFOG data are not available for several OECD non-European countries, except Australia, Colombia, Costa Rica, Israel and Japan. In addition, these data are available only for selected COFOG divisions in some countries. Efforts are underway to reach an agreement with these countries about the submission of these data to the OECD.