The Local Government Code of 1991 devolved basic services and responsibilities to local government units and increased their fiscal autonomy. It granted LGUs the power to develop their own organizational structures, appoint officials, and determine compensation. It also increased the share of LGUs in national tax revenues to 40% and outlined the allocation of these funds across provinces, cities, municipalities, and barangays based on a formula considering population, land area, and equal sharing. The code further aimed to strengthen LGUs by allowing partnerships with people's and non-governmental organizations.