What is the main difference between a federal government and a unitary government? A federal government is a democracy while a unitary government is a dictatorship. A federal government shares power with state and local governments while a unitary government has complete control over local governments. A federal government has both an executive and legislative branch while a unitary government only has one branch. A federal government has no monarch, while a unitary government has a constitutional monarch who is a living symbol of unity for nation.