Having considered the 2012 MTBPS and public submissions, the Standing Committee on Finance observed the following: . The global economic outlook remains uncertain and domestic economic growth is expected to remain moderate. These factors narrowed the fiscal space available to Government over the medium term, elevating the level of debt. Nonetheless, SA's fiscal position remains sound and sustainable, reinforced by accommodative monetary policy and will not follow a path of fiscal austerity; . With regards to attracting Foreign Direct Investment, South Africa needs to do more in terms of resolving labour disputes. FDI flows to South Africa dropped by 44 per cent in the past year indicates a gap in investment; . Parliamentary oversight committees and other structures need to assist in achieving value for money in spending, including efficient and effective spending on infrastructure. Procurement and SCM processes are a public concern; . SA remained more fiscally resilient than many countries, particularly in Europe; . The contingency reserves are meant to provide for unforeseen circumstances, macroeconomic and policy commitments and imperatives that would need urgent financial attention; . The revenue forecasts are premised largely on macroeconomic projections, which are also dependent on global and domestic economic developments such as mining strikes, unemployment and investment confidence. Equity and share investors around the world are risk averse, not only to SA; there is some degree of certainty in the bond market, as SA bonds are oversubscribed; . Consumers in SA are highly indebted such that 75 per cent of their disposable income pays debt and food price inflation rose to 9 per cent. NT indicated that there is currently no fear of bubble burst with respect to these largely unsecured loans but alluded to concerns over these worrying trends; . The budget deficit increased by 0.2 per cent higher than the February 2012 Budget; . Recovery in economic growth is expected to create jobs, boost revenue collection, and eventually reduce debt levels and budget deficits; . The Committee noted that National Treasury reported that Government would increase national net debt up to R1.7 trillion by 2015/16. National Treasury asserted that debt is being managed actively and some bonds were maturing currently. Growth is taking longer than expected to return to pre-recession levels. Crisis forced SA to adopt countercyclical fiscal measures as the country was in a position to do so; . The Committee noted that Expanded Public Works Programme (EPWP) budgets increased despite municipalities spending 54 per cent of their EPWP budgets in the previous year. National Treasury indicated that there were some improvements in infrastructure spending but not at a desired level yet; . With respect to a decline in business confidence, interaction with business seemed to be slow despite that these businesses indicated the willingness to work with government; . Concern raised that spending on agriculture has not been increased in the revised fiscal framework, given the sector's labour absorbing capacity and the need to create jobs; and . The Committee observed that the National Development Plan (NDP) provides a clear progressive approach to long term development plan.