Special government bonds refer to bonds issued to raise funds to build specific projects and rely on the government's credit to investors to repay the principal and interest on the agreed maturity date. The issuance cost of government special bonds is relatively low, the funds are earmarked, and the operation is relatively standardized and transparent. Moreover, corporate income tax and personal income tax are also exempted for government special bonds that have expired.

Local government bonds are classified according to the purpose of funds and the source of repayment funds, and can usually be divided into general bonds (ordinary bonds) and special bonds (income bonds). The former refers to bonds issued by local governments to alleviate the shortage of funds or solve the temporary shortage of funds, while the latter refers to bonds issued to raise funds to build specific projects.

Bond refers to a kind of securities. In short, the bond is that the issuer sells it to the buyer in order to raise funds, and the buyer lends the money to the issuer. The relationship between the two sides has grown from nothing to creditor's rights and debts. There are also many issuers of bonds, which can be countries, local governments, companies and so on. Bonds have three basic elements: face value, term and coupon.

Legal basis:

Article 2 of the Interim Measures for the Administration of the Issuance of Special Bonds of Local Governments: Special bonds of local governments (hereinafter referred to as special bonds) refer to government bonds issued by the governments of provinces, autonomous regions and municipalities directly under the Central Government (including cities with separate plans approved by provincial governments) and used for public welfare projects with certain benefits, and it is agreed that the government funds or special benefits corresponding to public welfare projects will repay the principal and interest within a certain period.