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Budaka district, which was one of the counties of Pallisa district, was formed on the principle of decentralization policy of local governance. Current development thinking is that development programmes that impact on people are better implemented through decentralization of functions, powers and responsibilities to local levels.

Decentralization is essential on grounds of economy, efficiency, effectiveness and equity because local authorities are better placed to determine local needs and priorities. This can promote the mobilization of local resources on a sustainable basis and to engage beneficiaries in implementation of programmes.

The beneficiaries themselves have opportunity to influence and own the development programmes their local governments implement and to hold local officials accountable for their actions. It is on the basis of the foregoing that the local community requested for the transformation of Budaka county into a District status.