When the power of state and central government is given to the local government, it is called decentralization. the basic idea behind it is that there are a large no. of problems that can be solved at local level.
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When some powers of the central and state governments are given to the local governments, it is known as decentralization.
 The basic idea behind decentralization is there are many problems which can be solved in the local level.
Local government also involves the participation of almost all the people in the locality. Thus, it strengthens democracy and efficiency of governing the nation.