A group is the most general unit (division) of the classification of development expenditures, covering expenditures that contribute in a similar way to the achievement of development policy objectives (i.e., have certain common characteristics that justify their inclusion in one of the groups). Roughly speaking, the division of development expenditures into groups reflects the assumptions made about the importance of individual expenditures to the achievement of development policy goals, i.e. the degree/way in which specific expenditures contribute to the achievement of these goals. The classification of development expenditures distinguishes the following public tasks carried out as part of development policy (or public tasks that support development): - Supporting individual branches of the economy (G) with a distinction made between supporting agriculture, forestry and fishing (Ga) and other branches (Gb); - Infrastructure and other public services (U); - Transportation infrastructure and services (T); - ICT infrastructure and services (I); - Science and research and development activities (N); - Higher education (W); - Operation of the educational system (O); - Health benefits and health promotion (Z); - Cultural activities (K); - Promotion of sports and tourism (S); - Environmental protection (¶); - Education (Y). The classification of development expenditures distinguishes the following economic categories to obtain information about the type of public task being financed and the economic nature of the expenditure: - current transfers to entities outside the public finance sector, with the exception of transfers related to shares in companies (surcharges) (tra); - expenditures in the nature of remuneration for work performed and services rendered (wyn); - expenditures for the development of human capital (other) (klu); - expenditures for the current activities of basic institutions from the point of view of achieving development policy objectives (bie); - investment expenditures (inv); - expenditures related to the acquisition and exercise of rights and obligations in companies (inj). Development expenditure - money spent within the framework of the state development policy by units of the general government sector for the benefit of units not belonging to this sector, leading to positive socio-economic transformations, in particular, increasing competitiveness, productivity, and increasing social and economic cohesion. The qualification of a given expenditure as developmental is based on its connection with the field of state intervention, which at a given stage of socio-economic development is considered key to the implementation of development processes. Therefore, the scope of the concept of development expenditure, from a theoretical point of view, should be considered variable and subject to adaptation to the priorities adopted in a given period of time, set in the strategies that are the basis for conducting development policy. The definition of development expenditure and the classification of development expenditures are conventions reflecting the needs of collecting information useful from the point of view of conducting development policy. Classification of Development Expenditures (DPE) - a systematic division of development expenditures, made using specific rules (including algorithms based on budget classification), which segregates and assigns different types of expenditures to appropriate classes based on the characteristics they meet. The classification of development expenditures is a three-tier classification. The first tier includes the division of development expenditures into groups of expenditures that similarly contribute to the objectives of development policy, the second tier includes the division of development expenditures by public tasks carried out within the framework of development policy, and the third tier includes the division of development expenditures by economic categories. Division by groups and tasks is a hierarchical division, i.e. each group includes a number of tasks that are not found in other groups. Division by economic categories is made on the basis of a different criterion, so that expenditures belonging to a certain economic category can be covered by many different tasks and different groups. The algorithms developed for the KWR are based on budget classification. This means that changes in budget classification entail changes in the KWR. Determination of the amount of development expenditures in individual units of the KWR division in year n is based on the version of the KWR adopted at the end of year n. Since the KWR covers expenditures of all units included in the S.13 sector, and the subjective scope of this sector is revised annually, determination of the amount of development expenditures in year n is based on the scope of the S.13 sector as of December 31 of year n.
Methodology available on the CSO website HERE