A federal government is a system of governance where power is divided between a central authority and smaller political units, such as states or provinces. This structure allows for a balance of power, enabling local governments to manage regional issues while the central government handles national matters. In a federal system, each level of government has its own responsibilities and can create laws, collect taxes, and enforce regulations. Examples of countries with federal governments include the United States, Canada, and Germany, where the division of powers helps accommodate diverse populations and regional interests.