Study the following information carefully and answer the question given below:
The Centre reportedly wants to continue providing subsidy to consumers for cooking gas and kerosene for five more years. This is not good news from the point of view of reining in the fiscal deficit. Mounting subventions for subsidies means diversion of savings by the government from investment to consumption, raising the cost of capital in the process. The government must cut expenditure on subsidies to create more fiscal space for investments in both physical and social infrastructure. It should outline a plan for comprehensive reform in major subsidies including petroleum, food and fertilizers and set goal posts.
Which of the following is an assumption which is implicit in the facts stated in the above paragraph?
1) People in India may not be able to pay more for petroleum products.
2) Many people in India are rich enough to buy petroleum products at market cost.
3) Govt may not be able to create more infrastructural facilities if the present level of subsidy continues for a longer time.
4) Govt of India has sought assistance from international financial organisations for its infrastructural projects.
5) None of these

Explanation

1,