The early governments after independence operated with only modest budget deficits, but in the 1970s and 1980s the amount of the budget deficit as a proportion of GDP increased gradually, reaching 8.4 percent in FY 1990. Following economic reforms, the deficit declined to 6.7 percent by FY 1994. More than 80 percent of the public debt was financed from domestic sources, but the proportion of foreign debt rose steadily in the late 1980s. However, although foreign aid to India was substantial, it was much lower than most other developing countries when calculated on a per capita basis. Banking and credit were dominated by government-controlled institutions, but the importance of the private sector in financial services was increasing slowly.