The local government plays an important role in development by administering basic services like health, agriculture, and infrastructure at the local level. The Local Government Code of 1991 devolved these functions from the national government and increased the financial capacity of local governments through higher shares of national taxes. However, issues remain such as inadequate funding, interference in personnel decisions, and the need to devolve more powers. The code aimed to strengthen decentralization and democracy through greater autonomy for local governments.