The Classification of Sectors is a basic classification applied to economic and social statistics for the classification of the activities, financing modes, owner types and legal forms of decision-making units into equivalent categories. The sectors (non-financial corporations, general government, house-holds, etc.) formed with the help of the classification are sufficiently similar in their economic behav-iour for national economic monitoring and analysis.
In the Classification of Sectors, the units are divided into different sectors on the basis of owners, purpose of activity and financing mode, while in the Standard Industrial Classification, the units are grouped under one main industry irrespective of the owner or the purpose of activity. For example, units producing educational services, which are classified into one main industry in the Industrial Classification, are divided in the Classification of Sectors by owner, legal form and nature of activity into non-financial corporations, general government and non-profit institutions serving households. On the other hand, a unit belonging to one sector may be engaged in economic activities in several industries, for example, a municipality has units belonging to the economic activities of public ad-ministration, education and health and social services.
The sector level is needed as the main summation level between the economic units and the whole national economy when describing output, income formation, secondary distribution of income, ac-cumulation, and the structure and development of financing. The monitoring of the Growth and Sta-bility Pact of the European Economic and Monetary Union (general government deficit and debt) requires close application of the Classification of Sectors when defining general government.
The Classification of Sectors 2000 is also confirmed as a public administration standard, that is, as a recommendation included in the system of public administration standards.