Fiscal deficit in 2015 $ = 4\%$ of GDP in 2015
Fiscal deficit in 2016 $ = 5\%$ of GDP in 2016
GDP in 2016 $= 1.1 \times $ GDP in 2015
So, Fiscal deficit in 2016 $ = 5\%$ of $1.1 \times$ GDP in 2015 $=5.5\%$ of GDP in 2015.
So, Fiscal deficit increased from $4\%$ to $5.5\%$ of the GDP in 2015.
Percentage increase $ = \dfrac{5.5-4}{4} \times 100\%= \dfrac{300}{8}\% = 37.5\%$