CBSE Class 10 Answered

• There are two or three levels of governments—Central Government, State Government and Local Government. 
• The state and local governments derive power from the constitution. 

• The Government at each level derives its power from the Constitution of the country. Thus, the Central Government cannot dilute the powers of the State or Local Governments.

• All the three levels of the Government can collect taxes from the people according to the guidelines of the Constitution of the country.

• In India there are three lists which contain subjects in which the Union and the State Governments may form laws. 

These are

1. Union List: This list contains subjects of national importance on which only the Central Government forms laws. Some of these are defence, foreign affairs, banking and currency. It is important to form uniform laws on these subjects.
2. State List: This list includes subjects of state and local importance such as agriculture, irrigation, trade and police. State governments form laws on these subjects.
3. Concurrent List: Subjects related to the interests of both Central and State Governments are included in this list. This includes forest, education, trade unions and marriage. In case there are conflicts between both wings of the Government, the laws made by the Union Government are deemed as final.