Having considered the 2012 MTBPS and public submissions, the Standing Committee on Finance observed the following: 1. The global economic outlook remains uncertain and domestic economic growth is expected to remain moderate; 2. Recovery in economic growth is expected to create jobs, boost revenue, and eventually reduce debt levels and budget deficits; 3. Narrow fiscal space available to government over the medium term, elevating the level of debt; 4. SA's fiscal position remains sound and sustainable, reinforced by accommodative monetary policy; 5. The contingency reserves are meant to absorb risks but remain low in the first two years of the proposed fiscal framework; 6. The revenue forecasts depend largely on global and domestic economic developments; and 7. Total national government net loan debt stood at R1.166 trillion (35.8 per cent of GDP) in 2012/13 and it is expected to peak at R1.7 trillion (39.2 per cent of GDP) in 2015/16.