Three of the seven sister states — Tripura, Nagaland, and Meghalaya — are heavily dependent on the Centre for the development work as their own tax revenues contribute less than one-third of their total taxes.

The bulk of borrowed funds mainly goes into revenue expenditure in the three states that will go to the polls next month. Unemployment remains a major concern in Nagaland.

In line with other states, inflation remains a worry in Tripura and Nagaland, though Meghalaya has controlled it a bit more efficiently.