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A federal government is one formed as a federation of more local governments. Based on a broad definition of a basic federal political system, there are two or more levels of government that exist within an established territory and govern through common institutions with overlapping or shared powers as prescribed by a constitution.

The overarching "Federal" Central government is the government at the level of the sovereign state. Usual responsibilities of this level of government are maintaining national security and exercising international diplomacy, including the right to sign binding treaties. Basically, Federal government has the power to make laws for the whole country, unlike the situation with local governments.

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