Draft Budget Part 7: Mogale predicts strong surplus over next five years
The seventh part of simplifying the Mogale City Local Municipality's (MCLM) recent Medium-Term Revenue and Expenditure Framework (MTREF), or the draft budget, focuses on the municipality's projected cash flow.
• Also read: Mogale's budget for sports infrastructure does not include Bob
The draft budget explains that in the current year (2024/2025), the cash flow includes operating activities, investing activities and financing activities, and the forecast is projected to be negative.
Despite the current financial year looking bleak, the draft budget indicates growth for the municipality in the next five years.
For the 2025/2026 financial year, it is estimated that MCLM will have a surplus of R4.278m, the 2026/2027 year will have R67.080m surplus, and the 2027/2028 year will have a surplus of R91.941m.
The municipality expects to collect 86% of what it's owed, which is considered a realistic target to fund the budget.
In February 2025, the municipality had R72m of its Eskom debt written off by the National Treasury as part of a relief plan. It expects the remaining R144m to also be written off. Since this debt is likely to be cancelled, it is not included in the cash flow projections.
The municipality expects to have a cash surplus of R149m by the end of the 2025/2026 financial year, growing to R448m over the medium-term budget period.
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