The most significant difference between a federal system and a unitary system lies in the distribution of powers between different levels of government:
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Federal System: In a federal system, power is divided between a central government and various constituent units, such as states or provinces. Each level of government has its own powers and responsibilities, and the constitution typically outlines these divisions. This allows for a diversity of laws and policies that can reflect local needs and preferences.
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Unitary System: In contrast, a unitary system centralizes power in a single national government. While there may be various levels of administration (such as regional or local governments), these subordinate governments derive their authority from the central government and cannot exercise powers that are not granted to them. The central government retains the ability to alter or eliminate these lower levels of government.
In summary, the statement that "the federal system splits powers but the unitary system gives most powers to the central government" accurately captures the primary distinction between the two systems of governance.