Why Use GFS?
Standardization of the fiscal variables is the most important strength of the GFS. This standardization does, however, inevitably lead to a loss of detail and data richness that must be kept in mind when using GFS data to assess decentralization. The GFS covers 149 countries on a yearly basis and is the only data source with such comprehensive coverage, although the number of countries with sub-national data is reduced by about two thirds. The GFS framework distinguishes between state or provincial and local governments, an important distinction in the decentralization context, and it has more than 50 variables for each government tier allowing fairly detailed analysis of fiscal flows. Expenditures The GFS framework provides a breakdown of expenditures by function and by economic type. The functional breakdown of expenditures is a useful tool in analyzing sectoral aspects of decentralization. Countries differ considerably in what types of expenditures are decentralized; for instance in
