Paragraph 2 refers to the first issue and presents a specific proposal. The paragraph outlines a process,
which is the central focus of the paper.
Paragraph 3 discusses further possibilities for redefinitions, extensions and possible links and
compatibilities to sectoral data gathered in other OECD and Eurostat databases (on R&D, innovation,
healthcare, social protection and education activities).
Specific technical questions concerning data delivery and the important issue of implementation are
tackled in paragraph 4. This section briefly analyses the needs and the state of the uniformity of public
expenditure data availability, of time specification and of timeliness across countries. The international
comparability of public sectors (General Government, “G.G.”) among EU countries requires the
definition of a uniform reference period set out by data availability. In an enlarged EU, this issue bears
even more importance, on account of the likely lack of data of the new Member States. In addition, this
section addresses question of what could be rather easier to implement in the short run and tentative
reflections on what could be developed in the medium-long period. The main argument is that the
approach should be very operational, giving priority to the proposed steps that can be immediately or
rapidly done by the majority of countries.
On the basis of a specific survey conducted among countries participating in the WGQPF, a number of
important remarks are made on the aspects of possible implementation and the assessment of the current
data situation in the Member States. They are referred to under data availability (data published or not
published yet at the national level) in the required format or that can be easily elaborated, with or without
additional efforts, and on the availability of backward information, timeliness in updating, etc. The more
interesting conclusion is that relevant improvements in the information system might be carried out, even
if quite often not immediately and provided a strong commitment by ECOFIN and/or additional
resources to data producers are assigned. With reference to further possible future enlargement of the
information system, some other useful elements to form an opinion are provided by the example of the
Italian case, with reference to some specific kinds of additional information.
2. Towards an enlarged dataset on QPF
The European Commission, the OECD and the EPC WGQPF agree that the most useful, uniform and
comprehensive database to examine the composition of public expenditure is the COFOG classification,
as it covers all different public expenditures and allows to identify government expenses for each
expenditure function. COFOG is internally consistent with the public expenditure standards for use in the
National Accounts and in the Excessive Deficit Procedure. However, the information available at present
is not sufficient to assess the efficiency and quality of public expenditures. Therefore, the information
contained in the COFOG have to be integrated with deeper and more detailed data: the proposed
approach is that of the “satellite account” where the core of the information system can be expanded
progressively, step by step, through time. It is possible to imagine different kinds of modules to be linked
to the main NA/COFOG dataset, which use specific classifications and more detailed statistics than those
officially available at present.
2.1. Extending the existing dataset
The definition of quality of public finance could be addressed both to the expenditure and to the revenue
sides of the budget. A short discussion on what we should consider as improving quality on the latter side
is contained in European Commission Report “Public Finance in EMU 2004”. In the present paper,
according to the priorities established in the EPC WGQPF, we concentrate our attention on the public
expenditure side.
The definition of quality is a relative concept, not an absolute one. In this sense quality means the
capacity of the expenditure structure to determine or to facilitate the achievement of identified objectives