Local governments are administrative offices of an area smaller than a state or province. The term is used to contrast with offices at nation-state level, which are referred to as the central government, national government, or (where appropriate) federal government.
In modern nations, local governments usually have less powers than national governments do. They usually have some power to raise taxes, though these may be limited by central legislation. In some countries local government is partly or wholly funded by subventions from central government taxation. The question of Municipal Autonomy - which powers the local government has, or should have, and why - is a key question of public administration and governance.
The institutions of local government vary greatly between countries, and even where similar arrangements exist, the terminology often varies. Common names for local government entities include state, province, region, department, county, prefecture, district, city, township, town, borough, parish, municipality, shire and village. However all these names are often used informally in countries where they do not describe a legal local government entity.
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