Local General Government
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The subsector consists of local governments plus non-market NPIs that are controlled by local governments. In principle, local government units are institutional units whose fiscal, legislative and executive authority extends over the smallest geographical areas distinguished for administrative and political purposes. The scope of their authority is generally much less than that of federal government or provincial and territorial governments, and they may, or may not be entitled to levy taxes on institutional units resident in their areas.
Local government units typically provide a wide range of services to local residents, some of which may be financed out of transfers from higher levels of government. As such, the local general government subsector consists of all local governments and all the non-market producing units under their control. These entities are engaged in the creation and implementation of local government policy and the delivery of services within their jurisdiction.
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