can be an important tool in budget formulation, management, and reporting. The way it is applied should be explained in the report narrative if the highest score is assigned on this basis. If the GFS classification is not applied, it is essential that the classification that is applied has comparable characteristics of clarity, consistency, robustness, and comprehensiveness that are features of GFS. Assessors will have to make a judgment about the qualities of the classification scheme used. Ideally, the latest version of GFS should be used, but if an earlier version is used, the assessor will have to make a judgment about whether it is satisfactory for the purpose. The assessor should mention the reasons for this judgment in the narrative for this indicator in the report.

4.1:3. Every part of the government’s annual budget, including current and capital items, should be covered by this indicator, whether they are integrated or use separate budget and accounting processes. In the latter case, the requirements for a score should be fulfilled for each process. To achieve an ‘A’ score, budget formulation, execution, and reporting should be based on the administrative classification, and every level of administrative, economic, and functional classification using GFS/COFOG standards or a classification that can produce consistent documentation comparable with those standards.

4.1:4. For countries rich in natural resources, the government’s revenue classification system should identify and report these revenues (whether taxes, royalties, bonuses, dividends, the government’s share of profits and the main sector(s) from which the revenues originate). The narrative of the assessment should identify whether such a classification exists and if it is linked to budget classification and the chart of accounts.

4.1:5. Consistent documentation comparable with those standards implies that comprehensiveness, consistency, reliability over time and across entities, and clarity of principles and explanatory notes (covering matters such as economic substance over legal form) are comparable to GFS standards, with fully documented methodology and procedures. It should thus be possible to convert the budget data into GFS-compatible reports. This may be done using a standard bridge table comparing the classification in use and the GFS system. If the other classification is not directly based on the GFS standard, the IMF may assess the conversion process to ascertain its ability to produce consistent GFS-compatible statistical reports. If conversion to GFS involves splitting accounting entries under the country’s classification and redistributing amounts across different codes in the GFS system, this may indicate a risk of inconsistency.

Dimension 4.1. Timing, coverage and data requirements

Time period Coverage Data requirements/calculation Data sources
Last completed fiscal year. BCG.
  • Information on the content and application of classifications applied and evidence that the classification is actually used in the budget documents and the chart of accounts.


  • Where the classification differs from the GFS system, information on bridging methodologies and examples of statistics produced using the bridging methodologies should be requested, if such conversions are made.



  • Relevant legislation and regulations identifying the application of the classification.


  • Annual budget document provided by the MoF for the last completed fiscal year.


  • Copy of the chart of accounts used for the last completed fiscal year.


Pillar Two: Transparency of Public Finances