(i) In a federal system, power is divided at different levels. For example at the government level among the Executive, Legislature and Judiciary. At the government level among the central Government, state Government and Local Government. Each level of Government and its organs are free to work in their jurisdiction.
(ii) On the other hand in the unitary form of Government, all the powers are rested in the hands of national government. In this system either there is one level of government or the sub-units are subordinate of central government. The central government can pass on orders to the provincial or local government. For example, Sri Lanka, China etc