The perception that City ratepayers fully fund indigent households is false

THE City of Cape Town often leaves the impression that the Free Basic Services it provides to indigent households are paid for entirely by ratepayers. This is simply not true.

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Central government assists municipalities through the Local Government Equitable Share grant which is an unconditional grant transfer that supplements revenue and specifically funds the operations and maintenance of free basic services for poor indigent households. This framework ensures that eligible and registered indigent households in Cape Town receive essential free basic services, with both municipal and central government funding making the program possible.