The widening gap assumes significance as the government has cut its FY27 market borrowing by nearly ₹1.2 trillion. New Delhi: India's fiscal deficit widened in the first six months of FY27, as capital spending and subsidy outlays continued to rise.Fiscal deficit, or the gap between government expenditure and receipts, stood at ₹7.14 trillion at the end of September, latest data from the Controller General of Accounts (CGA) showed. This amounts to 42.