On-lending funds from local government bonds: On-lending local government bonds are bonds issued by the central government and then on-lended to local governments for use.

The funds thus obtained are local government bond on-lending funds.

Generally, treasury bills are issued by the Ministry of Finance to make up for the imbalance of fiscal revenue and expenditure; public bonds refer to a type of bonds issued to raise construction funds.

Sometimes the two are collectively referred to as public debt.

Those issued by the central government are called central government bonds (national public bonds), and those issued by local governments are called local government bonds (local public bonds).

Extended information: Local Treasury Bonds refer to bonds issued by local government agencies with fiscal revenue in a certain country.

Local government bonds are generally used for the construction of local public facilities such as transportation, communications, housing, education, hospitals, and sewage treatment systems.

Local government bonds generally use the tax capacity of the local government as a guarantee for repayment of principal and interest.

There are two modes of local bond issuance. The first is for local governments to directly issue bonds; the second is for the central government to issue government bonds and then on-lend them to local governments. That is, the central government issues government bonds and then gives them to local governments.