What type of debt is issued specifically by local government entities?

Local government entities issue what is commonly referred to as "local government debt," which encompasses bonds and other financing instruments specifically designed to raise funds for projects and services at the local level, such as infrastructure, public facilities, and community services. This type of debt allows local governments to fund essential services and development projects that benefit their communities.

Local government debt is typically characterized by its issuance for specific local needs and is often backed by the taxing power of the municipality or revenues generated from specific projects. Unlike other forms of debt that may be relevant to larger governmental structures or the private sector, local government debt focuses on meeting the financial requirements unique to the locality it serves.

In comparison, public debt typically refers to the broader category of government debt issued by any level of government, whereas sovereign debt is specifically associated with national governments and their obligations. Private sector debt pertains to borrowing by private entities and is not relevant in the context of local government financing.