Finding Optimal Bundle and Change in Satisfaction after Changes in Budget Constraint
I understand what you though, the old indifference curve sure can touch but cannot conclude to be the optimal one. 

As the evidence of the money he can pay 1050 of the last year budget but for this year he could only use just 1020 to buy the same combination of those goods with the same utility so that means he still can buy and consume more with the relative purchasing power. 

I will just use 2 assumptions that are "more is better", "no bliss point". It is said that the budget which has shown or given here is not significant to the level that the consumer will keep and not spend so that as he can spend he will and with "no bliss point" that means this consumption is too small and yet not to the level that he will have negative marginal utility.

Therefore, as he can buy the old combination with the lesser price so he can allocate the leftover budget for either of two goods.