Explanation:

- Initial Savings: Raj's initial savings are calculated by subtracting expenditure from income, which is Rs. 45,000 - Rs. 33,000 = Rs. 12,000.

- After Increase: Raj’s income increases by 20%, thus the new income is Rs. 45,000 × 1.2 = Rs. 54,000.

- Expenditure Increase: Raj’s expenditure increases by 12%, so the new expenditure is Rs. 33,000 × 1.12 = Rs. 36,960.

- New Savings: New savings amount to Rs. 54,000 - Rs. 36,960 = Rs. 17,040.

- Percentage Increase in Savings: This is calculated as (Rs. 17,040 - Rs. 12,000) / Rs. 12,000 × 100% = 42%.

- Correct Answer: Option 4: 42%