The Use of the Classification of the Functions of Government for Sustainable Fiscal Operations - A Focus on the Use of Second-Level Data and Cross-Classification of Expenditures Based on Functional and Economic Classifications -

This study explores the use of group and cross-classification of the Classification of Government Functions for sustainable fiscal operations. First, it proposes the use of groups of the Classification of Functions of Government based on the preparation of the official COFOG, such as that used by the EU. This approach is meaningful in that it can ensure advanced monitoring of specific categories of governmental expenditures. In addition, cross-classification of the Classification of Government Functions should be utilized. These can be categorized by economic characteristics into functional categories. In particular, cross-classification can be monitored as detailed expenditure items. As such, it is hoped that this study will be useful in shedding light on official discourse regarding sustainable fiscal operations by utilizing the Classification of Functions of Government. The methodology can be used in establishing fiscal policy based on internal management as well as international comparisons of government expenditures. As a result, the use of groups and cross-classification can ensure sustainable fiscal operations of the central and local governments (including general government).