In the Federal form of Government , the power is shared between the central government and the states . In a Unitary form of government , the Union government has all the powers and the state governments are subordinate to it . The United States is a coming together type of Federation where all the constituent States have equal powers. Hence statement 1 is correct. States are as strong as the Federal government in the United States . India is a holding together type of Federation in which some States have more power than others . Hence statement 2 is correct. The central government has more power than the state government.