MARBLE HALL – Sekhukhune District municipality announced its current liquidity ratio was 0.8 percent as opposed to the National Department of Treasury’s scale of 1.5 percentage.
Sekhukhune District Municipality Executive Mayor, Keamotseng Ramaila said they were pleased to report that they had since reduced the liquidity ratio from 0.81 percent in 2016/17 and moved to 0.72 percent in the 2017/18 financial year.
By December 2018, the Executive Mayor said, the district municipality was at 1.21 percent against 1.5 percent national treasury’s norm.
“To this date, it is a common knowledge that our country is grappling with a budget deficit of R215 billion, 4.3 per cent of Gross Domestic Product (GDP), said Finance Minister Tito Mboweni during his maiden Budget Speech last month. And the honourable minister stated that, as a country, we are expecting economic growth of 0.7 per cent in 2018, meaning that we are in a technical recession. It is expected that real GDP growth in 2019 will rise to 1.5 per cent and then strengthen moderately to 2.1 per cent in 2020 to 2021,” added Ramaila.
He informed that in Sekhukhune district they still remained a predominantly rural municipality depended on grants from the national fiscus.
Ramaila concluded that the total grants received for the financial year 2017/18 was R1,358 780billion and R1,6billion for 2018-2019 financial year.