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Minority spokesperson on Finance, Dr Anthony Akoto Osei has urged Ghanaians to tighten their belts extra hard to contain the tough economic conditions that will hit the country as a result of government�s decision to seek IMF bailout. The former minister of state in charge of Finance in the NPP government said "We are in for tough times," he insisted, adding, "In the short term there will be difficulties.� He said the decision by government to rely on IMF for support to help sustain and transform the country�s ailing economy is an indication that the economy is in crises .President John Mahama, over the weekend, announced government's decision to opt for IMF's interventions following months of dire economic challenges facing the country. According to Dr Akoto Osei, Ghana's budget deficit is beyond sustainable limits; the currency is depreciating at a faster rate than was expected; there have been hikes in food and fuel prices; hikes in utility tariffs, taxes have been imposed on a number of products and services. All these have affected the cost of living in the country with organised labour embarking on an unprecedented nationwide demonstration to register their indignation about the economic situation in the country. Meanwhile, organised labour is gearing up for retrenchment of some public sector workers as part of the IMF conditionality. General Secretary of the ICU Solomon Kotei the media it is within the right of government and other employers to retrench workers but said it must be done in the right way. Ghana�s request for a bailout is likely to shake some investors, since it is seen as model of economic and political development in the continent. In 2007, it became the first country in sub Saharan Africa aside South Africa, to tap the sovereign bond market, raising $750m through a 10-year bond. The IMF warned African countries earlier this year that economic mismanagement risked �spoiling� the virtuous circle of rising growth and better governance that became known enthusiastically as �Africa rising�. Although the continent is still home of some of the world�s fastest-growing economies, issues including conflict, strikes, overspending and the slow pace of reforms have put a brake to expansion. The opening of talks with the fund about a financial rescue is a volte-face for John Mahama, who has long insisted that Ghana would resolve its economic problems using homegrown solutions. Critics said Mr Mahama�s government has been slow to cut public spending to bring down the double-deficit fiscal deficit, although some of its policies have also been praised. Finance Minister, Seth Terkper, has said discussions with the IMF have resumed supporting the country�s growth programme, adding that the most immediate concern was �to stabilize the cedi and reduce the fiscal deficit�. The cedi has sunk nearly 40 per cent this year to 3.7 against the US dollar, a bigger slide than even the war-ravaged Ukrainian hryvnia and the Syrian pound. Nearly three years after the start of oil production in Ghana, which was meant to strengthen Ghana�s fiscal position, the country faces a double-digit fiscal deficit after a 75 per cent increase in public salaries over two years. Inflation is rising rapidly as the cedi plunges. Ghana rans a fiscal deficit of 10.1 per cent gross domestic product in 2013. The minister made attempts to cut the deficit to 8.5 per cent this year but failed in the process The IMF warned, In its annual review of the Ghanaian economy in May, that under current policies, the fiscal deficit would stay at about 10.2 per cent this year and 9.3 per cent in 2015, far above the official target. Ghana's budget deficit is beyond sustainable limits; the currency is depreciating at a faster rate than was expected; there have been hikes in food and fuel prices; hikes in utility tariffs, taxes have imposed on a number of products and services. All these have affected the cost of living in the country with organised labour embarking on an unprecedented nationwide demonstration to register their indignation about the economic situation in the country.