Rating agency FITCH is warning that Ghana would end 2014 with its public debt going up substantially in relation to the value of the economy.
In the agency's new report on the budget, FITCH said that the public debt would increase to 54 percent by end of next year from the current 49 percent to GDP .
The agency is also warning that government would spend more than projected 9 billion Ghana cedis by the end of next year.
The Bank of Ghana as at August 2013 puts the public debt at almost 44 billion Ghana cedis. But with FITCHs' warning it means that Ghana's debt would go up to levels that analysts say might be unsustainable.
The situation may force the country to opt for debt relief to help manage the situation. Economist with Databank research Samson Akligoh tells JOYBUSINESS the development calls for tougher actions to save the situation.
The World Bank recently Ranked Ghana as the fourth country in Africa which has the highest public debt in relation the total value of the economy. Government for instance in the 2014 budget is projecting it will spend 6.4 billion payment for interest on loans secured.
Meanwhile government says it is surprised by FITCH 's comments because they are already working to address concerns raised about government's expenses and the public debt. Speaking at a Post Budget forum on the Budget organised IFEJ ,Deputy Minister of Finance Ato Forson says they would soon come out with a detailed responds to all the issues raised by FITCH soon.
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