The UK Government has seen their debt rise to new heights this year with the percentage of debt as compared to the overall economic output of the country reaching 70%. These figures were released by the International Monetary Fund (IMF) IMF has mentioned their doubts over the AAA ratings the country has enjoyed which is reserved only for the most secure borrowers in the world. IMF has said that the rating could be affected if this trend of increasing debts the country is going through continues. The UK media has left no stone unturned to turn this development into the apocalypse for the country with the investors panicking in the market when the news was released through main stream media. Some newspapers have gone so far as to predict that the economy could be on the verge of going bust. But still the country does not look like it is under so much pressure and the reaction which the UK media has given is not at all shared by the other countries, lets compare UK debt levels with other developed countries. UK has about 68.7% of debt as compared to their economic output whereas the figure for US stands at 84.8% with Italy staring at 115.8% and Japan living with a scary 218.6%. After seeing these figures and the kind of effect they are having on these countries makes us realise that the condition of the UK economy is not that bad after all. The basic point to worry about is that the debt percentage of UK has risen from just 44.1% back in 2007 to the present 68.4% which is a rise of more then 50% in just a time span of 2 years and if the current estimates are taken umder consideration which have taken into account the current rate of borrowing by the country, the percentage is expected to rise to much higher levels then what we are seeing now. The credit rating agency which is the Standard & Poor has announced its estimates which the says if the Government support continues like the way its going on then the resulting debt from supporting the financial industry of the country would lead to the debt percentage to the national economic output cross 100% and might even be fast enough that the percentage might cross that milestone by 2013 itslef. And if this becomes a reality the country would be soon loosing their AAA credit rating and that would further reduce the reasons for the country to retain that rating. Standard and Poor have already taken the actions which are taken in such situations and have reduced the ratings of the country from the previous AAA stable to AAA negative which has happened for the first time since the company had started analysing and rating UK's public finances which started in 1978. The company has not downgraded any other country which is part of the G7 and which shows the implications of the decisions taken by UK and its affects on its ratings. Another rating agency called the Moody has issued a warning to UK and the US as well that if these debt problems are not solved soon enough then this could lead to both the countries loosing their AAA ratings altogether. UK can not be singled out even though the economic and debt condition of the country is not good but once a comparison is made between UK and the rest of the European Union it seems that UK is doing only little worse then they should be doing. EU is expected to have its debt equal to its annual economic production. The estimates by the IMF for the year 2014 shows that UK is doing slightly better the rest of its counterparts with the US expected to have a percentage value of 108.2% with Italy having a percentage of 128.5% and France having a debt of 96.3% with the UK having a debt level of 98.3% which now seems only reasonably dangerous. Once the spending stop on public expenditure and the stimulus programs sun out of funds, one of the few ways which will be used by the Governments to pay back the debt would be to increase the taxes on its citizens which would further cause problems to the already pissed of population. However other experts are saying that this would not be such a problem ot the UK and that the debt levels which are currently being viewed as high and are going to get only higher in the next few years are not that high and not actually impossible to pay off. The Government will be able to pay of the debts in a gradual manner with the current focus of the Government being on pushing and stimulating the economy. This move will automatically improve th revenues of the Government in the form higher income taxes and duties etc. When the economy starts to grow again and gain some momentum the Government will have enough to slowly reduce the debt of the country and it would no longer be such a huge problem as it is being viewed by the British media right now.