The recovery strategy will be pursued through a package of fiscal and monetary measures and a reforms package. In some ways, this is an intensification of existing efforts. Since 2017, consumption expenditure financed by the government has grown rapidly — at an average real rate of 10.6%. Big reforms — the Goods and Services Tax (GST), insolvency reform, inflation targeting —have been implemented. India’s rank in the Ease of Doing Business index has improved from 130 in 2016 to 63 in 2019. But economic growth has slowed down from 8.3% in 2016-17 to 5% in 2019-20. As a percentage of GDP, new project announcements by the private sector were the lowest in 2019-20 since the Centre for Monitoring Indian Economy began the data series in 1995-96. This central paradox of recent years needs to be considered while assessing the recovery strategy. We need to worry about how the policies work, and not just admire the list of announcements. On fiscal support, three facts are important to consider. 

First, no matter which nuclear option is used to expand resource availability, fiscal resources will be scarce. Tax, dividends, spectrum auction and other receipts will fall sharply. A significant part of the expenditure is committed, including ?7.1 lakh crore of interest expenditure in 2020-21. Expenditure on schemes such as the employment guarantee scheme and food subsidy will increase. Second, since the crisis is destroying considerable value in the economy, there will be

many competing demands on fiscal resources. To avoid a fiscal crisis later, the government must spend its limited resources efficiently. Third, our expenditure system is plagued with a number of allocative and operational inefficiencies. This crisis necessitates comprehensive expenditure management reforms. Considering the above will give the government a sense of the budget constraint in which it can support the economy.

Answer the following questions from the above passage -

Q1. How India's rank in the ease of Doing Business Index has improved? 

Q2. What will be the recovery strategy for India? 

Q3. In which year, new project announcements by the private sector were the lowest? 

Q4. On fiscal support, what are the three important facts to consider? 

Q5. Considering the three factors, what government can do?