The Committee supports the additional allocation of R509 million to compensate municipalities for the escalating costs of providing free basic services such as water and electricity to citizens that qualify for free basic services under the indigent policy of municipalities. This will assist in reducing pressure imposed by the costs of free basic services to municipal budgets which must be provided to indigent households in order to keep up with the Bill of Rights as stipulated in chapter 2 of the Constitution of the Republic of South Africa, 1996.