The deficit indicators, however, have deteriorated in the recent period following crisis induced fiscal expansion (Table 6). The average saving rate also showed a substantial increase from 23 per cent of GDP in the 1990s to about 31 per cent in the 2000s with a peak saving rate of over 33 per cent achieved during the high growth phase of 2004–08.
Fiscal consolidation helped in lifting the overall saving rate as public sector saving rose significantly. The efficiency of capital utilisation also improved as the incremental capital output ratio (ICOR) declined to 3.7 during the high growth phase of 2004–08 from 5 in the 1990s. Subsequently, however, capital efficiency has declined in the post-crisis period (Table 7).