Tsunami may worsen fiscal deficit: ADB

  • 25/01/2005

  • Business Line (New Delhi)

The Asian Development Bank (ADB) has said that the tsunami will adversely impact India's fiscal deficit through large spending on rehabilitation and reconstruction operations that will be initiated as soon as the relief phase draws to an end. The Bank said the impact on manufacturing and services is negligible, and the adverse impact on fisheries highly localised. Therefore, it is not expected that the tsunami will have any noticeable impact on GDP growth.