COFOG (Classification of the Functions of Government) is an internationally used classification standard for a structure of states expenditures (state budgets) with regard to their purpose (function). COFOG was developed by the OECD.
COFOG classification is an integral part of the System of National Accounts (SNA) since 1993 as one of four functional classifications (the other three classifications are COICOP, COPN and COPP) intended mainly for purposes of the statistical survey and international comparison of statistical data.
Use of the COFOG in practice: COFOG classification is mostly used by the Ministry of Finance and the statistical offices of individual countries to break down the budgets and for other statistical purposes. Each activity (or expenditure) of public sector organizations must be assigned to one of the functions according to COFOG classification. From an international point of view, it is a classification to compare the structure of expenditure on public services.