Canadian Classification of Functions of Government (CCOFOG) 2014

7 - Total outlays

This classification covers total expenditure by the Canadian general government consisting of all federal, provincial-territorial and local government units and all resident non-market NPIs that are controlled by government units. An expense is a decrease in net worth resulting from a transaction. Expenses are those short-term costs which are incurred to earn revenues, e.g., salary paid, rent etc. An expenditure is the sum of expense and the net investment in nonfinancial assets. Expenditure is the long-term cost which is spent on purchase or growth of fixed assets, e.g., payments made to purchase new land or building for business, equipment, etc.

• Exclusion(s)

  • currently, net investment in non-financial assets; and transactions in financial assets and liabilities which would be needed for expenditures

701 - General public services

This division covers government expenditure relating to the administration, development, and management of general public services. General public services includes expenditure on executive and legislative organs, financial and fiscal affairs, external affairs; foreign economic aid; general services; basic research; R&D general public services; general public services not elsewhere classified; public debt transactions; and transfers of a general character between different levels of government.

702 - Defense

This division covers government expenditure relating to the administration, development, and management of defense. Defense includes expenditure on military defense; civil defense; foreign military aid; defense R&D; and defense not elsewhere classified.

703 - Public order and safety

This division covers government expenditure relating to the provision of services which promote safe communities and prevent any activities that may interfere with the operations of society. Public order and safety includes expenditure on police services; fire protection services; law courts; prisons; public order and safety R&D; and public order and safety not elsewhere classified.

704 - Economic affairs

This division covers government expenditures relating to the administration, development, and management for the economic well-being of the country.
Economic affairs includes expenditure on general economic, commercial, labour affairs, and citizenship and immigration; agriculture, forestry, fishing, and hunting; fuel and energy; mining, manufacturing, and construction; transport; communication; and other industries.

705 - Environmental protection

This division covers government expenditures relating to the administration, development, and management of environmental protection; waste water management; pollution abatement; protection of biodiversity and landscape; R&D environmental protection; and environmental protection not elsewhere classified. Environmental protection includes expenditure on waste management. The breakdown of environmental protection is based upon the Classification of Environmental Protection Activities (CEPA, https://ec.europa.eu/eurostat/ramon/nomenclatures/index.cfm?TargetUrl=LST_NOM_DTL&StrNom=CEPA_2000&StrLanguageCode=EN&IntPcKey=&StrLayoutCode=HIERARCHIC) as elaborated in the European System for the Collection of Economic Information on the Environment (SERIEE, https://ec.europa.eu/eurostat/web/products-manuals-and-guidelines/-/KS-BE-02-002) of the Statistical Office of the European Communities (Eurostat).

706 - Housing and community amenities

This division covers government expenditures relating to the administration, development, and management of housing and community amenities; water supply; street lighting; R&D housing and community amenities; and housing and community amenities not elsewhere classified. Housing and community amenities includes expenditure on housing development; and community development.

707 - Health

This division covers government expenditures relating to the administration, development, and management of health. Health includes expenditure on medical products, appliances, and equipment; outpatient services; hospital services; public health services; R&D health; and health prevention (collective) and health not elsewhere classified.

Government expenditure on health includes expenditure on services provided to individual persons and services provided on a collective basis. Expenditure on individual services is allocated to groups (7071) through (7074); expenditure on collective services is assigned to groups (7075) and (7076). Collective health services are concerned with matters such as formulation and administration of government policy; setting and enforcement of standards for medical and paramedical personnel and for hospitals, clinics, surgeries, etc.; regulation and licensing of providers of health services; and applied research and experimental development into medical and health-related matters. However, overhead expenditure connected with administration or functioning of a group of hospitals, clinics, surgeries, etc. is considered to be individual expenditure and is classified to groups (7071) through (7074) as appropriate.

708 - Recreation, culture, and religion

This division covers government expenditures relating to the administration, development, and management of recreation, culture, and religion. Recreation, culture, and religion includes expenditure on recreational and sporting services; cultural services; broadcasting and publishing services; religious and other community services; R&D recreation, culture, and religion; and recreation, culture, and religion not elsewhere classified. Government expenditure on recreation, culture, and religion includes expenditure on services provided to individual persons and households and expenditure on services provided on a collective basis. Individual expenditure is allocated to groups (7081) and (7082); expenditure on collective services is assigned to groups (7083) to (7086). Collective services are provided to the community as a whole. They include activities such as formulation and administration of government policy; formulation and enforcement of legislation and standards for providing recreational and cultural services; and applied research and experimental development into recreational, cultural, and religious affairs and services.

709 - Education

This division covers government expenditures relating to the administration, development, and management of education.

Education includes expenditure on pre-primary, primary and secondary education; college education; university education; education not definable by level; subsidiary services to education; R&D education; and education not elsewhere classified.

Government expenditure on education includes expenditure on services provided to individual pupils and students and expenditure on services provided on a collective basis. Expenditure on individual services is allocated to groups (7091) through (7096); and expenditure on collective services is assigned to groups (7097) and (7098). Collective educational services are concerned with matters such as formulation and administration of government policy; setting and enforcement of standards; regulation, licensing, and supervision of educational establishments; and applied research and experimental development into education affairs and services. However, overhead expenditure connected with administration or functioning of a group of schools, colleges, etc. is considered to be individual expenditure and is classified to groups (7091) through (7096) as appropriate.

The breakdown of education is based upon the level categories of the 1997 International Standard Classification of Education (ISCED-97) (https://www150.statcan.gc.ca/n1/pub/81-604-x/2012001/notes-eng.htm#archived) of the United Nations Educational, Scientific and Cultural Organization (UNESCO). This division includes military schools and colleges where curricula resemble those of civilian institutions, police colleges offering general education in addition to police training, and the provision of education by radio or television broadcasting. Expenditure so incurred is classified to groups (7091) to (7095) as appropriate.

710 - Social protection

This division covers government expenditures relating to the administration, development, and management of social protection. Social protection includes expenditure on sickness and disability; old age; survivors; family and children; unemployment; housing; victim's services and social exclusion not elsewhere classified; R&D social protection; and social protection not elsewhere classified. Government expenditure on social protection includes expenditure on services and transfers provided to individual persons and households and expenditure on services provided on a collective basis. Expenditure on individual services and transfers are allocated to groups (7101) through (7107); and expenditure on collective services is assigned to groups (7108) and (7109). Collective social protection services are concerned with matters such as formulation and administration of government policy; formulation and enforcement of legislation and standards for providing social protection; and applied research and experimental development into social protection affairs and services. The social protection functions and their definitions are based on the 2008 European System of Integrated Social Protection Statistics (ESSPROS, https://ec.europa.eu/eurostat/web/products-manuals-and-guidelines/-/KS-GQ-16-010) of the Statistical Office of the European Communities (Eurostat). In ESSPROS, social protection includes health care, but this division does not include health care. Health care is covered by Division 707. Hence, medical goods and services provided to persons who receive the cash benefits and benefits in kind specified in groups (7101) through (7107) are classified under (7071), (7072), or (7073) as appropriate.

Examples of social protection programs in Canada include the Old Age Security program (https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview.html) and the Child Care Benefit (https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security.html)