government agency, while in another country they may be distributed among departments dealing with the environment, housing, and industrial development.

The items classified should, in principle, be individual transactions. Each purchase of goods and services, wage payment, transfer, or other outlay should be assigned a COFOG code according to the function that the transaction serves.

If administrative outlays overlap two or more classes, an attempt should be made to apportion outlays among the classes concerned. If this approach is not feasible, the total should be allocated to that class that accounts for the largest share of the total outlay.

# **Defining infrastructure outlays using the COFOG**

The definition of infrastructure sectors for this exercise is limited to infrastructure services supporting economic activities plus the services included in the water and sanitation Millennium Development Goals. Table 3.2 lists the COFOG classes that correspond to that definition.

Definitions are provided only for the lowest functional category (for example, the 4-digit class) being used for data collection.

Note that the only infrastructure subsector that is not unambiguously captured by the COFOG code is irrigation. Irrigation expenditures are defined in this guide as the combination of two cost elements: (i) Expenditures in irrigation systems (a share of class 70421 Agriculture), and (ii) multipurpose development projects (70474).

**Table 3.2  COFOG codes capturing infrastructure cost elements**

|**Code**|**Division/group/class**|**GFSM 2001 definition**|
|---|---|---|
|**704**|**Economic affairs**||
|7042|Agriculture, forestry, fishing, and|hunting|
||_Irrigation systems (a share out_<br>_of class 70421 Agriculture)_|_Administration, construction, maintenance, and/ or operation of flood control, irrigation and_<br>_drainage systems, including grants, loans, or subsidies for such works._|
|7047|Other industries||
|_70474_|_Multipurpose development_<br>_projects_|_Administration, construction, maintenance, and/ or multipurpose development projects typically_<br>_consisting of integrated facilities for generation of power, flood control, irrigation, navigation, and_<br>_recreation._|
|7043|Fuel and energy||
|_70434_|_Other fuels_|_Administration, construction, maintenance, and/ or operation of affairs and services involving_<br>_fuels such as alcohol, wood and wood waste bagasse, and other noncommercial fuels._|
|_70435_|_Electricity_|_Administration, construction, maintenance, and/ or operation of traditional sources of electricity_<br>_such as thermal or hydro supplies and newer sources such as wind or solar heat._|
|_70436_|_Nonelectric energy_|_Administration, construction, maintenance, and/ or operation of nonelectric energy affairs and_<br>_services, which chiefly concern the production, distribution, and utilization of heat in the form of_<br>_steam, hot water, or hot air;_<br>_Includes: geothermal resources; nonelectric energy produced by wind or solar heat._|
|7045|Transport||
|_70451_|_Road transport_|_Administration of affairs and services concerning operation, use, construction, and maintenance_<br>_of road transport systems and facilities (roads, bridges, tunnels, parking facilities, bus terminals,_|

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