Municipal Debt

Municipal debt refers to the money that local governments, such as cities, counties, or states, borrow to fund public projects like schools, roads, or public transportation. They typically issue bonds, which are a form of borrowing that investors buy, and in return, the government promises to pay back with interest over time. This allows communities to finance large projects upfront without immediately raising taxes. While municipal debt can help improve infrastructure and services, it also means future taxpayers are responsible for repaying these loans, so responsible management is important.