Intergovernmental relations are significant in federal systems as they govern the interactions between national and subnational governments. These relationships determine how power, resources, and responsibilities are allocated, impacting policy implementation across various levels. Effective intergovernmental relations can facilitate cooperation on shared issues, such as public health or infrastructure, enhancing overall governance. However, tensions in these relations can lead to conflicts over authority and funding, potentially disrupting services. Thus, managing intergovernmental relations is crucial for ensuring cohesive and effective governance within federal systems.