Borrowing authority refers to the permission municipalities require from provincial governments to take on debt. Unlike senior governments that can borrow largely at will, municipalities must obtain provincial approval for significant borrowing, with limits often tied to debt-servicing capacity or assessed property values. This provincial oversight prevents municipalities from accumulating unsustainable debt that taxpayers would ultimately have to repay. Borrowing authority requirements vary by province—some require approval for each major loan, while others set overall debt limits within which municipalities can operate. The constraints ensure fiscal responsibility but can limit flexibility for major capital investments.