Federalism is a system of good in which the power is divided between a central authority and various constituent units of the country. Some key features of federalism are:– (i) There are two or more levels of government. (ii) Different tiers of government have their own jurisdiction regarding legislation, taxation and administration. (iii) The existence and authority of each tier of government is constitutionally guaranteed.(iv) The changes in the fundamental provisions of the constitution require the consent of both the levels of government. (v) Courts play a key role to interpret the constitution and the power of different levels of government. The Supreme Court plays the role of an umpire. (vi) Sources of revenue for each level of government are clearly mentioned to ensure its financial autonomy.(vii) The federal system have dual objectives i.e., to safeguard and promote unity of the country. (viii) At the same time it accomodates regional diversity. An ideal federal system of government must have mutual trust and agreement to live together.