In: Economics
The state government is the regional government which is directly responsible for providing immediate security, maintaining law and order and for providing health, and education services as well as ensuring employment to all the citizens of the state.
The federal government, also known as central government has broad powers in regards to collecting taxes, maintaining the physical boundaries of the country secure, building infrastructures connecting the states, maintaining international relations with various countries etc.
It is important for both, central as well as state governments, to have their own powers in order to ensure efficient administration of the country in their own unique and responsible way.
Powers of the states are also called police powers as the states are the authority empowered and mandated to regulate and enforce rule of law, safety and security of the people as the police does.