A unit of government which does not claim sovereign powers. Thus the states of federal countries such as Germany or the US are not local governments, whereas French départements and UK counties are. The powers of local governments are entirely delegated from above. Their finance may be provided from the central government, or they may be empowered to levy taxes themselves. They may have discretion over some policies, or be required to administer policies laid down centrally. There may be any number of layers of local government, possibly with overlapping functions. See also fiscal federalism.