A.Despite the strong performance of the economy in 2010-11, the outlook for…

Concept:

Sentence-rearrangement (para-jumble) items are solved by first fixing a MANDATORY PAIR (or block) of sentences bound by an explicit link -- a backward-pointing pronoun (“these issues”), a transition word (“Additionally”), or a clear sequential/cause-effect dependency -- because that block must stay adjacent, in that order, in every valid arrangement. The remaining sentences are then placed by matching a stand-alone, topic-introducing sentence against the ones that elaborate or conclude it.

Application:

1. The sentence beginning “The three key macroeconomic concerns…” stands alone: it introduces three distinct concerns (high inflation, high current account deficit, and fiscal consolidation) without referring back to anything else, so it can open the passage.

2. The sentence beginning “Additionally, there was an expectation…” adds one more item using the word “Additionally” -- a continuation marker that must follow a sentence which has already started a list -- so it comes right after the concerns sentence.

3. The sentence beginning “The Budget has made an attempt to address all these issues…” uses the plural, backward-pointing phrase “these issues”; its antecedent is complete only once BOTH the three concerns and the added reform-process expectation have been stated, so it must follow both of the first two sentences.

4. That fixes the mandatory block: the concerns sentence, then the “Additionally” sentence, then the “these issues” sentence, in that order.

5. Of the remaining two sentences, the one contrasting the strong 2010-11 performance with a clouded 2011-12 outlook reads as a broad follow-on remark once the Budget's general response has been described, and the one about the specific GDP growth figure and the “optimistic” assessment reads as the concluding, most specific evaluative point -- so they close the passage in that order.

Cross-check:

Reversing the concerns sentence and the “Additionally” sentence breaks the transition word, since “Additionally” would then have nothing to add to. Moving the “these issues” sentence any earlier breaks its antecedent, since only one of the two contributing sentences would have been stated by then. This confirms the concerns → Additionally → these-issues block is fixed, closed by the broad contrast sentence and then the specific growth-figure critique.

Why the other arrangements don't work:

• Opening with the “Additionally” sentence: this transition word signals one more item being added to a list that must already be underway -- it cannot be the very first line of the passage.

• Placing the specific GDP-growth-figure critique immediately before the broad 2010-11-vs-2011-12 contrast sentence: a narrow, number-specific evaluative remark does not naturally set up that kind of broad thematic contrast, which normally frames the discussion rather than follows a specific figure already judged.

• Placing the concerns-listing sentence at the very end, right after the Budget's general response to “these issues” has already been described earlier in the same order: a sentence that first names the concerns reads oddly once the response to those very concerns has already been mentioned.