## Box 1. Using the Government Finance Statistics Manual (GFSM 2001) ## Source details **Canonical URL:** [Box 1. Using the Government Finance Statistics Manual (GFSM 2001)](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/tnm/2009/_tnm0906.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/tnm/2009/_tnm0906.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/tnm/2009/_tnm0906.pdf.json) --- ### Guidance on economic and functional classifications - GFSM 2001 economic classification: - Presented in Annex III and defined on an accrual basis to create comparability between fiscal reports and national accounts. - With the exception of the consumption of fixed capital, the line items in the GFSM 2001 economic classification apply to the cash and the accrual bases equally. - Standard GFS tables include net items; for budget formulation and management, gross flows should be recorded (example: acquisition of financial assets for new policy purposes should be separated from repayments of loans). - GFSM 2001 functional classification: - Corresponds to the United Nations Classification of the Functions of Government (COFOG) and is presented in Annex IV. - Countries may expand COFOG to match program structures; when they do, they should establish a mapping table between COFOG and the national functional/program/organizational classification to prepare COFOG-based reports. - Notes on transactions and classification: - Acquisition of a nonfinancial asset by purchase or barter does not affect net worth and is a transaction in nonfinancial assets; giving up ownership without receiving value is recorded as a capital transfer (expense). - The GFSM 2001 functional classification can classify acquisitions of nonfinancial assets and can be cross-classified with the economic classification. ### Illustrative budget classification scheme and structure - Fundamental principle: - Each expenditure item must be attributed clearly and unambiguously to three independent main classifications (administrative, economic, functional) without duplication, overlap, or repetition. - Hierarchical subclassifications (illustrative examples from Table 1): - Administrative: Title; Chapter; Section; Article; Paragraph; Ministry; Managing unit; Division; Group; Class - Economic: Main classification (Expenses); Subclassification (Compensation of employees); Supplementary information (Wages and salaries in cash) - Functional: Main function (e.g., Agriculture Forestry Fishing Hunting); Function; Secondary function - Example code lengths shown in Table 1: - 2 characters; 2 characters; 1 character; 1 character; 2 characters; 3 characters; 1 character; 1 character ### Incorporating additional classifications - Complementary classifications to include: - Classification by geographical location (administrative unit, taxpayer, or recipient) - Classification of beneficiaries of government transfers and subsidies - Classification of sources of financing and counterpart funds for external loans and grants (use carefully to avoid undermining comprehensiveness or creating complex earmarking) - Integration example (Table 2) resulting in a 24-character code; administrative classification code lengths example: - 2 characters; 2 characters; 4 characters; 1 character; 1 character; 2 characters; 5 characters; 1 character; 6 characters - Examples of additional classification fields in Table 2: - Geographic (Zip code assigned by the Statistics Office) - Source of financing (e.g., General budget; other sources include donor aid projects, resource revenue funds, etc.) - Beneficiary (e.g., Public entity) ### Using the classification to track poverty-reducing expenditures - Approach: - Relate poverty-reducing spending defined in PRSPs to the existing budget classification (preferably program classification, or functional classification at subfunction level) to prepare timely accounting reports. - Use a binary rating system: assign score "0" for nonpoverty-reducing and "1" for poverty-reducing expenditures — provides global information and must be combined with other classifications. - Advantages of functional classification for tracking: - Poverty-reducing expenditures can be clearly identified from budget data. - Links between PRSP and annual budget can be analyzed using a bridge table linking PRSP categories to functional classification. - Example bridge table mappings (PRSP -> Corresponding Functions -> Functional Code) from Table 3: - Improving populations’ health -> Health (all subfunctions) -> 707 - Culture -> 70821 - Access to drinking water -> Water supply -> 70631 - R&D -> Housing and community amenities -> 70661 - Environmental development -> Waste management -> 70511 - Protection of biodiversity and landscape -> 70541 ### Program classification - Definition and structure: - A program is a set of activities meeting specific government policy objectives (examples: preprimary education, development of crop production). - Programs may be subdivided into activities (example: vaccination within a disease prevention program) and further into initiatives/projects. - Purposes of program classification: 1. Identifying and clarifying goals and objectives of government spending. 2. Monitoring operational performance through performance indicators (inputs, outputs, outcomes). - Advantages: improved transparency, accountability, and linkage of inputs to objectives/outcomes. - Requirements when establishing program classification: - Clear responsibility and accountability allocated to a specific unit and program manager within the ministry. - Data collection and analysis requirements kept within reasonable bounds. - Codification: no specific international norm; depends on country needs. Programs covering several ministries require bridge tables to allocate responsibilities. - Illustrative program scheme (Table 4) — example code lengths: - 2 characters; 1 character; 1 character; 2 characters; 1 character; 1 character; 1 character; 2 characters; 5 characters; 1 character; 6 characters - Example entries in Table 4: - Ministry: Ministry of Agriculture and Forestry - Program: Assisting the breeding - Program manager: General Director for Agriculture - Managing unit: Human Resources Division - Sub-program: Training of poultry farmers - Main classification: Expenses; Subclassification: Use of goods and services; Other information: Training of staff - Source of financing examples: General budget or IPPTE, donors, and oil budget ### Relationship between the budget and accounting classifications - Best practice: - Fully integrate budget classification and accounting classification (chart of accounts, COA), incorporating asset and liability accounts and suspense accounts. - COA serves as coding framework for budgetary and financial data (integrated approach used particularly in Anglophone countries). - Issues where integration is limited: - Some countries: accounting and budgeting classifications entirely separate or only partially integrated, causing loss of information and non-alignment between budgetary and accounting transactions. - Practical solutions when classifications differ: - Implement a central database linking budgetary and accounting entries. - Introduce a separate presentation in the accounting classification to record budgetary transactions (specific class of operations). - Harmonize structure and coverage and develop bridge tables between classifications. - Country examples: - Mexico: accounting and budgeting classifications entirely separate. - Francophone countries: integration limited to the economic classification. - France: used specific classes of auxiliary accounts to link accounting and budget line items. - Argentina: uses harmonization and bridge tables approach. ### Preconditions for successful implementation of a new budget classification - Political ownership: - High-level commitment and leadership are essential; legislative support is desirable for legal/regulatory changes and endorsement/use of changed budget presentation and reporting. - Technical capacity: - Sufficient skilled and trained staff in the finance ministry and strengthened capacity in budget departments of line ministries and other budgetary institutions are critical. - Outside consultants may supplement but are not a substitute for building internal capacity. - IT systems: - Electronic systems preferred (not necessarily sophisticated) to process budgetary transactions, enable reclassification according to main schemes, and strengthen administrative accounting and reporting. - Revisions often introduced as part of an integrated and automated financial management information system (IFMIS). ### Critical steps and suggested timetable for reform - Characteristics: - Reforms can be lengthy, especially to fully integrate the budget classification and the COA; changes likely required in legal/regulatory frameworks, financial management systems, and training/outreach. - Preparatory work should be completed at least six months before the start of the budget year and, for the COA, at least two months before implementation. - A transitional period should allow stakeholder review, development of operational guidelines, training, and legal amendments if necessary. - Illustrative timetable (Table 5) — Activity / Suggested Responsibility / Complete by: 1. Approve, in principle, the top (chapter) level classification for revenues, expenditures, and financing item, and complete development of draft budget classification / MOF / June 30, N-2 2. Complete review and any final amendments of budget classification / MOF, and selected ministries / October 31, N-2 3. Formally approve budget classification, and submit new classification based budget N-1 to Council of Ministers / MOF / December 31, N-2 4. Complete training material for new classification, and train budget entities on new classification / MOF / March 31, N-1 5. Issue budget circular on the basis of the new budget classification / MOF / April N-1 6. Submit budget requests based on new budget classification to MOF / Budget entities / July 31, N-1 7. Complete modifications to budgeting records/systems / MOF, and budget entities / July 31, N-1 8. Complete development of draft COA / MOF / July 31, N-1 9. Complete review and any final amendments of COA / MOF, selected ministries, with consultants / September 30, N-1 10. Submit budget to national assembly / MOF / October, N-1 11. Formally approve COA / MOF / October 31, N-1 12. Complete training material for new COA, and train accounting staff / MOF / Aug – Dec N-1 13. Amend accounting records to incorporate new COA / MOF, other budget entities / Aug – Dec N-1 14. Approval of budget / Parliament / Dec N-1 ### Annex I — Example of a Chart of Accounts (COA) for Expenditure, integrating the budget classification - Structure and fields: - The first four columns represent the budget classification, and the COA comprises this information and the final column (financial transactions). - Fields shown: - Administrative classification: Title; Chapter; Section; Article; Paragraph - Functional classification: Main function; Function; Secondary function - Additional classifications: Source of financing; Beneficiary - Financial classification: Financial and suspense accounts (mainly) - Example entries: - Ministry: Ministry of Agriculture and Forestry - Managing unit: (Directorate, project) - General Directorate for Agriculture - Main classification: Expenses - Subclassification: Compensation of employees; Other information - Wages and salaries in cash - Division: Economic Affairs Group - Agriculture Forestry Fishing Hunting - Class: Agriculture - General budget (Or HIPC, donors, and oil budget) - Public entity (Including geographic codification (option)) - Bank account: Treasury account at the Central Bank - Field lengths (characters) listed: - 2 characters; 2 characters; 1 character; 1 character; 2 characters; 2 character; 1 character; 1 character; 1 character; 6 characters; 4 characters ### Annex II — GFSM 2001: Classification of Revenue (top-level categories and selected subcategories) - 11 Taxes - 111 Taxes on income, profits, and capital gains - 1111 Payable by individuals - 1112 Payable by corporations and other enterprises - 1113 Unallocable - 112 Taxes on payroll and workforce - 113 Taxes on property - 1131 Recurrent taxes on immovable property - 1132 Recurrent taxes on net wealth - 1133 Estate, inheritance, and gift taxes - 1134 Taxes on financial and capital transactions - 1135 Other nonrecurrent taxes on property - 1136 Other recurrent taxes on property - 114 Taxes on goods and services - 1141 General taxes on goods and services - 11411 Value-added taxes - 11412 Sales taxes - 11413 Turnover and other general taxes on goods and services - 1142 Excises - 1143 Profits of fiscal monopolies - 1144 Taxes on specific services - 1145 Taxes on use of goods and on permission to use goods or perform activities - 11451 Motor vehicle taxes - 11452 Other taxes on use of goods and on permission to use goods or perform activities - 1146 Other taxes on goods and services - 115 Taxes on international trade and transactions - 1151 Customs and other import duties - 1152 Taxes on exports - 1153 Profits of export or import monopolies - 1154 Exchange profits - 1155 Exchange taxes - 1156 Other taxes on international trade and transactions - 116 Other taxes - 1161 Payable solely by business - 1162 Payable by other than business or unidentifiable - 12 Social contributions - 121 Social security contributions - 1211 Employee contributions - 1212 Employer contributions - 1213 Self-employed or nonemployed contributions - 1214 Unallocable contributions - 122 Other social contributions - 1221 Employee contributions - 1222 Employer contributions - 1223 Imputed contributions - 13 Grants - 131 From foreign governments - 1311 Current - 1312 Capital - 132 From international organizations - 1321 Current - 1322 Capital - 133 From other general government units - 1331 Current - 1332 Capital - 14 Other revenue - 141 Property income - 1411 Interest - 1412 Dividends - 1413 Withdrawals from income of quasi-corporations - 1414 Property income attributed to insurance policyholders - 1415 Rent - 142 Sales of goods and services - 1421 Sales by market establishments - 1422 Administrative fees - 1423 Incidental sales by nonmarket establishments - 1424 Imputed sales of goods and services - 143 Fines, penalties, and forfeits - 144 Voluntary transfers other than grants - 1441 Current - 1442 Capital - 145 Miscellaneous and unidentified revenue ### Annex III — GFSM 2001: Economic Classification of Expense (top-level categories and selected subcategories) - 21 Compensation of employees - 211 Wages and salaries - 2111 Wages and salaries in cash - 2112 Wages and salaries in kind - 212 Social contributions - 2121 Actual social contributions - 2122 Imputed social contributions - 22 Use of goods and services - 23 Consumption of fixed capital - 24 Interest - 241 To nonresidents - 242 To residents other than general government - 243 To other general government units - 25 Subsidies - 251 To public corporations - 2511 To nonfinancial public corporations - 2512 To financial public corporations - 252 To private enterprises - 2521 To nonfinancial private enterprises - 2522 To financial private enterprises - 26 Grants - 261 To foreign governments - 2611 Current - 2612 Capital - 262 To international organizations - 2621 Current - 2622 Capital - 263 To other general government units - 2631 Current - 2632 Capital - 27 Social benefits - 271 Social security benefits - 2711 Social security benefits in cash - 2712 Social security benefits in kind - 272 Social assistance benefits - 2721 Social assistance benefits in cash - 2722 Social assistance benefits in kind - 273 Employer social benefits - 2731 Employer social benefits in cash - 2732 Employer social benefits in kind - 28 Other expense - 281 Property expense other than interest - 2811 Dividends (public corporations only) - 2812 Withdrawals from income of quasi-corporations (public corporations only) - 2813 Property expense attributed to insurance policyholders - 2814 Rent - 282 Miscellaneous other expense - 2821 Current - 2822 Capital ### Annex IV — GFSM 2001: Classification of Expense by Function of Government (selected headings and items) - Total outlays - 701 General public services - 7011 Executive and legislative organs, financial and fiscal affairs, external affairs - 7012 Foreign economic aid - 7013 General services - 7014 Basic research - 7015 R&D - 7016 General public services n.e.c. - 7017 Public debt transactions - 7018 Transfers of a general character between different levels of government - 702 Defense - 7021 Military defense - 7022 Civil defense - 7023 Foreign military aid - 7024 R&D Defense - 7025 Defense n.e.c. - 703 Public order and safety - 7031 Police services - 7032 Fire protection services - 7033 Law courts - 7034 Prisons - 7035 R&D Public order and safety - 7036 Public order and safety n.e.c. - 704 Economic affairs - 7041 General economic, commercial, and labor affairs - 7042 Agriculture, forestry, fishing, and hunting - 7043 Fuel and energy - 7044 Mining, manufacturing, and construction - 7045 Transport - 7046 Communication - 7047 Other industries - 7048 R&D Economic affairs - 7049 Economic affairs n.e.c. - 705 Environmental protection - 7051 Waste management - 7052 Waste water management - 7053 Pollution abatement - 7054 Protection of biodiversity and landscape - 7055 R&D Environmental protection - 7056 Environmental protection n.e.c. - 706 Housing and community amenities - 7061 Housing development - 7062 Community development - 7063 Water supply - 7064 Street lighting - 7065 R&D Housing and community amenities - 7066 Housing and community amenities n.e.c. - 707 Health - 7071 Medical products, appliances, and equipment - 7072 Outpatient services - 7073 Hospital services - 7074 Public health services - 7075 R&D Health - 7076 Health n.e.c. - 708 Recreation, culture, and religion - 7081 Recreational and sporting services - 7082 Cultural services - 7083 Broadcasting and publishing services - 7084 Religious and other community services - 7085 R&D Recreation, culture, and religion - 7086 Recreation, culture, and religion n.e.c. - 709 Education - 7091 Pre-primary and primary education - 7092 Secondary education - 7093 Postsecondary nontertiary education - 7094 Tertiary education - 7095 Education not definable by level - 7096 Subsidiary services to education - 7097 R&D Education - 7098 Education n.e.c. - 710 Social protection - 7101 Sickness and disability - 7102 Old age - 7103 Survivors - 7104 Family and children - 7105 Unemployment - 7106 Housing - 7107 Social exclusion n.e.c. - 7108 R&D Social protection - 7109 Social protection n.e.c. - Notes and abbreviations: - R&D = Research and development. - n.e.c. = not elsewhere classified. - GFSM 2001 incorporates the Classification of the Functions of Government (COFOG) of the OECD and the UN. ### Publication and contact - TNM/09/06 - International Monetary Fund - Fiscal Affairs Department - 700 19th Street NW - Washington, DC 20431 - USA - Tel: 1-202-623-8554 - Fax: 1-202-623-6073 - Budget Classification - Prepared by Davina Jacobs, Jean-Luc Hélis, and Dominique Bouley - Fiscal Affairs Department - INTerNATIoNAl MoNeTAry FUND - Technical noTes and Manuals *Source: _tnm0906 - References* ### Box 1. Using the Government Finance Statistics Manual (GFSM 2001) ### Box 1. Using the Government Finance Statistics Manual (GFSM 2001) to Design Budget Classifications ### Guidance on economic and functional classifications - GFSM 2001 economic classification is presented in Annex III and is defined on an accrual basis to create comparability between fiscal reports and national accounts. - With the exception of the consumption of fixed capital, the line items in the GFSM 2001 economic classification apply to the cash and the accrual bases equally. - Standard GFS tables include net items; for budget formulation and management, gross flows should be recorded (e.g., acquisition of financial assets for new policy purposes should be separated from repayments of loans). - GFSM 2001 functional classification corresponds to the United Nations Classification of the Functions of Government (COFOG) and is presented in Annex IV. - Countries may expand COFOG to match program structures; when they do, they should establish a mapping table between COFOG and the national functional/program/organizational classification to prepare COFOG-based reports. - GFSM 2001 notes: - Acquisition of a nonfinancial asset by purchase or barter does not affect net worth and is a transaction in nonfinancial assets; giving up ownership without receiving value is recorded as a capital transfer (expense). - The GFSM 2001 functional classification can classify acquisitions of nonfinancial assets and can be cross-classified with the economic classification. ### Illustrative budget classification scheme and structure - Fundamental principle: each expenditure item must be attributed clearly and unambiguously to three independent main classifications (administrative, economic, functional) without duplication, overlap, or repetition. - Table 1 (illustrative) shows hierarchical subclassifications (examples): - Administrative: Title, Chapter, Section, Article, Paragraph, Ministry, Managing unit, Division, Group, Class - Economic: Main classification (Expenses), Subclassification (Compensation of employees), Supplementary information (Wages and salaries in cash) - Functional: Main function (e.g., Agriculture Forestry Fishing Hunting), Function, Secondary function - Example code lengths shown in Table 1: 2 characters; 2 characters; 1 character; 1 character; 2 characters; 3 characters; 1 character; 1 character ### Incorporating additional classifications - Additional complementary classifications include: - Classification by geographical location (administrative unit, taxpayer, or recipient) - Classification of beneficiaries of government transfers and subsidies - Classification of sources of financing and counterpart funds for external loans and grants (note: such classification must be used carefully to avoid undermining comprehensiveness or creating complex earmarking) - Table 2 illustrates integration resulting in a 24-character code and example code lengths: - Administrative classification code lengths: 2 characters; 2 characters; 4 characters; 1 character; 1 character; 2 characters; 5 characters; 1 character; 6 characters - Examples of additional classification fields in Table 2: - Geographic (Zip code assigned by the Statistics Office) - Source of financing (e.g., General budget; other sources include donor aid projects, resource revenue funds, etc.) - Beneficiary (e.g., Public entity) ### Using the classification to track poverty-reducing expenditures - Relate poverty-reducing spending defined in PRSPs to the existing budget classification (preferably program classification, or functional classification at subfunction level) to prepare timely accounting reports. - Binary rating system: assign score "0" for nonpoverty-reducing and "1" for poverty-reducing expenditures — provides global information and must be combined with other classifications. - Advantages of functional classification for tracking: - Poverty-reducing expenditures can be clearly identified from budget data. - Links between PRSP and annual budget can be analyzed using a bridge table linking PRSP categories to functional classification. - Table 3 (example bridge table) mappings (PRSP -> Corresponding Functions -> Functional Code): - Improving populations’ health -> Health (all subfunctions) -> 707 - Culture -> 70821 - Access to drinking water -> Water supply -> 70631 - R&D -> Housing and community amenities -> 70661 - Environmental development -> Waste management -> 70511 - Protection of biodiversity and landscape -> 70541 ### Program classification - Definition: a program is a set of activities meeting specific government policy objectives (e.g., preprimary education, development of crop production). - Programs may be subdivided into activities (e.g., vaccination within a disease prevention program) and further into initiatives/projects. - Purposes of program classification: 1. Identifying and clarifying goals and objectives of government spending. 2. Monitoring operational performance through performance indicators (inputs, outputs, outcomes). - Program classification advantages: improved transparency, accountability, and linkage of inputs to objectives/outcomes. - Requirements when establishing program classification: - Clear responsibility and accountability allocated to a specific unit and program manager within the ministry. - Data collection and analysis requirements kept within reasonable bounds. - Program classification codification: no specific international norm; depends on country needs. Programs covering several ministries require bridge tables to allocate responsibilities. - Table 4 (illustrative program scheme) includes example code lengths: - Program classification and other fields code lengths: 2 characters; 1 character; 1 character; 2 characters; 1 character; 1 character; 1 character; 2 characters; 5 characters; 1 character; 6 characters - Example entries in Table 4: - Ministry: Ministry of Agriculture and Forestry - Program: Assisting the breeding - Program manager: General Director for Agriculture - Managing unit: Human Resources Division - Sub-program: Training of poultry farmers - Main classification: Expenses; Subclassification: Use of goods and services; Other information: Training of staff - Source of financing examples: General budget or IPPTE, donors, and oil budget ### Relationship between the budget and accounting classifications - Best practice: fully integrate budget classification and accounting classification (chart of accounts, COA), incorporating asset and liability accounts and suspense accounts. - Integrated approach used particularly in Anglophone countries; COA serves as coding framework for budgetary and financial data. - In some countries accounting and budgeting classifications are entirely separate or only partially integrated, causing loss of information and non-alignment between budgetary and accounting transactions. - Practical solutions when classifications differ: - Implement a central database linking budgetary and accounting entries. - Introduce a separate presentation in the accounting classification to record budgetary transactions (specific class of operations). - Harmonize structure and coverage and develop bridge tables between classifications. - Examples cited: - Mexico: accounting and budgeting classifications entirely separate. - Francophone countries: integration limited to the economic classification. - France: used specific classes of auxiliary accounts to link accounting and budget line items. - Argentina: uses harmonization and bridge tables approach. ### Preconditions for successful implementation of a new budget classification - Political ownership: - High-level commitment and leadership are essential; legislative support is desirable for legal/regulatory changes and endorsement/use of changed budget presentation and reporting. - Technical capacity: - Sufficient skilled and trained staff in the finance ministry and strengthened capacity in budget departments of line ministries and other budgetary institutions are critical. - Outside consultants may supplement but are not a substitute for building internal capacity. - IT systems: - Electronic systems preferred (not necessarily sophisticated) to process budgetary transactions, enable reclassification according to main schemes, and strengthen administrative accounting and reporting. - Revisions often introduced as part of an integrated and automated financial management information system (IFMIS). ### Critical steps and suggested timetable for reform - Reforms can be lengthy, especially to fully integrate the budget classification and the COA; changes likely required in legal/regulatory frameworks, financial management systems, and training/outreach. - Preparatory work should be completed at least six months before the start of the budget year and, for the COA, at least two months before implementation. - A transitional period should allow stakeholder review, development of operational guidelines, training, and legal amendments if necessary. - Illustrative timetable (Table 5) — Activity / Suggested Responsibility / Complete by: 1. Approve, in principle, the top (chapter) level classification for revenues, expenditures, and financing item, and complete development of draft budget classification / MOF / June 30, N-2 2. Complete review and any final amendments of budget classification / MOF, and selected ministries / October 31, N-2 3. Formally approve budget classification, and submit new classification based budget N-1 to Council of Ministers / MOF / December 31, N-2 4. Complete training material for new classification, and train budget entities on new classification / MOF / March 31, N-1 5. Issue budget circular on the basis of the new budget classification / MOF / April N-1 6. Submit budget requests based on new budget classification to MOF / Budget entities / July 31, N-1 7. Complete modifications to budgeting records/systems / MOF, and budget entities / July 31, N-1 8. Complete development of draft COA / MOF / July 31, N-1 9. Complete review and any final amendments of COA / MOF, selected ministries, with consultants / September 30, N-1 10. Submit budget to national assembly / MOF / October, N-1 11. Formally approve COA / MOF / October 31, N-1 12. Complete training material for new COA, and train accounting staff / MOF / Aug – Dec N-1 13. Amend accounting records to incorporate new COA / MOF, other budget entities / Aug – Dec N-1 14. Approval of budget / Parliament / Dec N-1 *Box 1. Using the Government Finance Statistics Manual (GFSM 2001).* ### References ### References ### Bibliographic sources - Ahmad, Ehtisham, Maria Albino-War, and Raju Singh, 2006, “Subnational Public Financial Management: The Public Financial Management Process” (Washington: International Monetary Fund). - Allen, Richard and Daniel Tommasi (ed.), 2001, Managing Public Expenditure: A Reference Book for Transition Countries, SIGMA. - Bouley, Dominique, 2004, Les défis techniques du suivi des dépenses de réduction de la pauvreté dans les pays francophones, Reflets et perspectives de la vie économique, (2004-1), tome XLIII, De Boeck University. - International Monetary Fund, 2001, Government Finance Statistics Manual (Washington: International Monetary Fund). - Khan, Abdul and Stephen Mayes, 2009, “Transition to Accrual Accounting,” IMF Technical Notes and Manuals (Washington: International Monetary Fund). - Lienert, Ian, 2003, “A Comparison between Two Public Expenditure Management Systems in Africa,” IMF Working Paper 03/2 (Washington: International Monetary Fund). - Potter, Barry H. and Jack Diamond, 1999, Guidelines for Public Expenditure Management (Washington: International Monetary Fund). - Robinson, Marc (ed.), 2007, Performance Budgeting: Linking Funding and Results (Washington: International Monetary Fund). ### Publication identification - Technical Notes and Manuals 09/06 | 2009 15 ### ANNEX I. Example of a Chart of Accounts (COA) for Expenditure, Integrating the Budget Classification ### Structure and fields (as presented) - The first four columns represent the budget classification, and the COA comprises this information and the final column (financial transactions). - Administrative classification - Title - Chapter - Section - Article - Paragraph - Functional classification - Main function - Function - Secondary function - Additional classifications - Source of financing - Beneficiary - Financial classification - Financial and suspense accounts (mainly) - Example entries shown: - Ministry: Ministry of Agriculture and Forestry - Managing unit: (Directorate, project) - General Directorate for Agriculture - Main classification: Expenses - Subclassification: Compensation of employees; Other information - Wages and salaries in cash - Division: Economic Affairs Group - Agriculture Forestry Fishing Hunting - Class: Agriculture - General budget (Or HIPC, donors, and oil budget) - Public entity (Including geographic codification (option)) - Bank account: Treasury account at the Central Bank - Field lengths (characters): - 2 characters - 2 characters - 1 character - 1 character - 2 characters - 2 character - 1 character - 1 character - 1 character - 6 characters - 4 characters ### ANNEX II. GFSM 2001—Classification of Revenue ### Top-level revenue categories and selected subcategories (as listed) - 11 Taxes - 111 Taxes on income, profits, and capital gains - 1111 Payable by individuals - 1112 Payable by corporations and other enterprises - 1113 Unallocable - 112 Taxes on payroll and workforce - 113 Taxes on property - 1131 Recurrent taxes on immovable property - 1132 Recurrent taxes on net wealth - 1133 Estate, inheritance, and gift taxes - 1134 Taxes on financial and capital transactions - 1135 Other nonrecurrent taxes on property - 1136 Other recurrent taxes on property - 114 Taxes on goods and services - 1141 General taxes on goods and services - 11411 Value-added taxes - 11412 Sales taxes - 11413 Turnover and other general taxes on goods and services - 1142 Excises - 1143 Profits of fiscal monopolies - 1144 Taxes on specific services - 1145 Taxes on use of goods and on permission to use goods or perform activities - 11451 Motor vehicle taxes - 11452 Other taxes on use of goods and on permission to use goods or perform activities - 1146 Other taxes on goods and services - 115 Taxes on international trade and transactions - 1151 Customs and other import duties - 1152 Taxes on exports - 1153 Profits of export or import monopolies - 1154 Exchange profits - 1155 Exchange taxes - 1156 Other taxes on international trade and transactions - 116 Other taxes - 1161 Payable solely by business - 1162 Payable by other than business or unidentifiable - 12 Social contributions - 121 Social security contributions - 1211 Employee contributions - 1212 Employer contributions - 1213 Self-employed or nonemployed contributions - 1214 Unallocable contributions - 122 Other social contributions - 1221 Employee contributions - 1222 Employer contributions - 1223 Imputed contributions - 13 Grants - 131 From foreign governments - 1311 Current - 1312 Capital - 132 From international organizations - 1321 Current - 1322 Capital - 133 From other general government units - 1331 Current - 1332 Capital - 14 Other revenue - 141 Property income - 1411 Interest - 1412 Dividends - 1413 Withdrawals from income of quasi-corporations - 1414 Property income attributed to insurance policyholders - 1415 Rent - 142 Sales of goods and services - 1421 Sales by market establishments - 1422 Administrative fees - 1423 Incidental sales by nonmarket establishments - 1424 Imputed sales of goods and services - 143 Fines, penalties, and forfeits - 144 Voluntary transfers other than grants - 1441 Current - 1442 Capital - 145 Miscellaneous and unidentified revenue ### ANNEX III. GFSM 2001—Economic Classification of Expense ### Top-level expense categories and selected subcategories (as listed) - 21 Compensation of employees - 211 Wages and salaries - 2111 Wages and salaries in cash - 2112 Wages and salaries in kind - 212 Social contributions - 2121 Actual social contributions - 2122 Imputed social contributions - 22 Use of goods and services - 23 Consumption of fixed capital - 24 Interest - 241 To nonresidents - 242 To residents other than general government - 243 To other general government units - 25 Subsidies - 251 To public corporations - 2511 To nonfinancial public corporations - 2512 To financial public corporations - 252 To private enterprises - 2521 To nonfinancial private enterprises - 2522 To financial private enterprises - 26 Grants - 261 To foreign governments - 2611 Current - 2612 Capital - 262 To international organizations - 2621 Current - 2622 Capital - 263 To other general government units - 2631 Current - 2632 Capital - 27 Social benefits - 271 Social security benefits - 2711 Social security benefits in cash - 2712 Social security benefits in kind - 272 Social assistance benefits - 2721 Social assistance benefits in cash - 2722 Social assistance benefits in kind - 273 Employer social benefits - 2731 Employer social benefits in cash - 2732 Employer social benefits in kind - 28 Other expense - 281 Property expense other than interest - 2811 Dividends (public corporations only) - 2812 Withdrawals from income of quasi-corporations (public corporations only) - 2813 Property expense attributed to insurance policyholders - 2814 Rent - 282 Miscellaneous other expense - 2821 Current - 2822 Capital ### ANNEX IV. GFSM 2001—Classification of Expense by Function of Government ### Functional classification headings and selected detailed items (as listed) - Total outlays - 701 General public services - 7011 Executive and legislative organs, financial and fiscal affairs, external affairs - 7012 Foreign economic aid - 7013 General services - 7014 Basic research - 7015 R&D - 7016 General public services n.e.c. - 7017 Public debt transactions - 7018 Transfers of a general character between different levels of government - 702 Defense - 7021 Military defense - 7022 Civil defense - 7023 Foreign military aid - 7024 R&D Defense - 7025 Defense n.e.c. - 703 Public order and safety - 7031 Police services - 7032 Fire protection services - 7033 Law courts - 7034 Prisons - 7035 R&D Public order and safety - 7036 Public order and safety n.e.c. - 704 Economic affairs - 7041 General economic, commercial, and labor affairs - 7042 Agriculture, forestry, fishing, and hunting - 7043 Fuel and energy - 7044 Mining, manufacturing, and construction - 7045 Transport - 7046 Communication - 7047 Other industries - 7048 R&D Economic affairs - 7049 Economic affairs n.e.c. - 705 Environmental protection - 7051 Waste management - 7052 Waste water management - 7053 Pollution abatement - 7054 Protection of biodiversity and landscape - 7055 R&D Environmental protection - 7056 Environmental protection n.e.c. - 706 Housing and community amenities - 7061 Housing development - 7062 Community development - 7063 Water supply - 7064 Street lighting - 7065 R&D Housing and community amenities - 7066 Housing and community amenities n.e.c. - 707 Health - 7071 Medical products, appliances, and equipment - 7072 Outpatient services - 7073 Hospital services - 7074 Public health services - 7075 R&D Health - 7076 Health n.e.c. - 708 Recreation, culture, and religion - 7081 Recreational and sporting services - 7082 Cultural services - 7083 Broadcasting and publishing services - 7084 Religious and other community services - 7085 R&D Recreation, culture, and religion - 7086 Recreation, culture, and religion n.e.c. - 709 Education - 7091 Pre-primary and primary education - 7092 Secondary education - 7093 Postsecondary nontertiary education - 7094 Tertiary education - 7095 Education not definable by level - 7096 Subsidiary services to education - 7097 R&D Education - 7098 Education n.e.c. - 710 Social protection - 7101 Sickness and disability - 7102 Old age - 7103 Survivors - 7104 Family and children - 7105 Unemployment - 7106 Housing - 7107 Social exclusion n.e.c. - 7108 R&D Social protection - 7109 Social protection n.e.c. ### Notes and abbreviations (as presented) - R&D = Research and development. - n.e.c. = not elsewhere classified. - GFSM 2001 incorporates the Classification of the Functions of Government (COFOG) of the OECD and the UN. ### Publication and contact - TNM/09/06 - International Monetary Fund - Fiscal Affairs Department - 700 19th Street NW - Washington, DC 20431 - USA - Tel: 1-202-623-8554 - Fax: 1-202-623-6073 - Budget Classification - Prepared by Davina Jacobs, Jean-Luc Hélis, and Dominique Bouley - Fiscal Affairs Department - INTerNATIoNAl MoNeTAry FUND - Technical noTes and Manuals *Source: _tnm0906 - References* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/tnm/2009/_tnm0906.pdf_