Local government consists of all types of public administration whose responsibility covers only a local part of the economic territory, apart from local agencies of social security funds.
According to ESA 2010, paragraph 20.65 local government is defined as: The local government (excluding social security) subsector (S.1313) consists of government units having a local sphere of competence (with the possible exception of social security units). Local governments typically provide a wide range of services to local residents, some of which may be financed out of grants from higher levels of government. Statistics for local government cover a wide variety of governmental units, such as counties, municipalities, cities, towns, townships, boroughs, school districts, and water or sanitation districts. Often local government units with different functional responsibilities have authority over the same geographic areas. For example, separate government units representing a town, a county, and a school district have authority over the same area. In addition, two or more contiguous local governments may organise a government unit with regional authority that is accountable to local governments. Such units are classified to the local government subsector.