The correct answer is option 3, which includes reforms 1, 2, and 3.

Reform 1: The Budget presentation was advanced to 1st February. This change was made to give ministries enough time to implement the planned activities right from the beginning of the financial year. Previously, the Budget was presented at the end of February, leading to delayed implementation and lesser efficiency in utilization of allotted funds.

Reform 2: The Railway Budget was merged with the General Budget. This change was made to bring the Railways into the center stage of the government`s fiscal policy. Previously, the Railway Budget was presented separately, which limited its connection to the broader fiscal policy.

Reform 3: The classification of expenditure was changed by removing the plan and non-plan classification. This reform aimed to provide a holistic view of sector and ministry allocations. The plan and non-plan classification was often seen as outdated and limited in assessing the overall allocations and priorities of various sectors and ministries.

It is important to note that the provided answer is generally correct; no correction or alert is needed in this case.