In a federal system, the state and national governments share power. Some authority is exclusive to the national government and some is reserved to the states and the people, but other powers (such as the right to tax) are concurrent, or shared by both entities.
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The branch of government that can establish a federal government is the legislative. This is done through the Congress which is given the power by the US constitution.
The people who have the power to make laws are politics, the government and the president.Added: (This answer applies to the US only) ONLY the Legislative Branch of government has the power to propose and pass laws. They forward the legislation to the President who will sign the legislation which turns it into law. The Executive Branch of government carries out the laws, and the Judicial Branch of government passes judgement on them. Other nations have different and/or varying processes.
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The Legislative Branch amends the Constitution, but not alone. Three-quarters of the states must ratify a proposed amendment.
legislative branch