Shimla, Feb. 9 -- Himachal chief minister Sukhvinder Singh Sukhu on Sunday said that they will challenge the Revenue Deficit Grant (RDG) discontinuation by the Centre, both politically and legally, adding that the move threatens the state's financial backbone and can be resolved only through political intervention by Prime Minister Narendra Modi. Calling the situation a "grave challenge" for the state, Sukhu said, "We will fight like a soldier for the rights of the state. We will fight this battle politically and legally, and we appeal to the Opposition to think in the larger interest of Himachal. We are ready to go to Delhi and meet the PM along with BJP MPs and MLAs to take up this issue. I think once the provision of RDG is gone, it will be difficult to reclaim the rights of the people." "The 16th Finance Commission's decision to not recommend RDG has pushed the hill state into a serious financial emergency," said Sukhu, who also holds the finance portfolio. Terming the halt "abysmal injustice", the finance department on Sunday organised a detailed presentation on Himachal Pradesh's financial position. MLAs, senior officers and mediapersons were present. The Bharatiya Janata Party (BJP) legislators, however, skipped the presentation, which was met with criticism from the ruling government which labelled the move as "unfortunate". The presentation pointed out that even after reducing capital expenditure to zero, the state would still face an annual resource gap of nearly Rs.6,000 crore. "Abolition of RDG is not government's issue, but is a matter of the rights of the state's people. RDG for 17 States have been scrapped, but Himachal is worst affected as 12.7% of the budget comes from RDG, which is second highest in the country," he remarked. Appealing for unity, Sukhu urged BJP MLAs and MPs from Himachal to support the government for the rights of the state. "This is not the fight of one government. Governments come and go, but this is about the rights of the state," he said. "We have spoken to the Union finance minister. Ultimately, only PM can take a political decision on this." "We will move the courts, but this is primarily a political battle that must be fought politically," he said, adding that special grants would not be a substitute for RDG. "The central government should at least ensure 50% royalty on the power projects who have repaid their entire loan and give all those power projects back to the state who have completed 40 years of commissioning." He said, "Rs.4,500 crore of BBMB arrears have not been given to the state since 2012 despite the Supreme Court verdict. We are also fighting a legal battle to get back the Shanan Power Project whose lease period is over with the Punjab government." Sukhu pointed out that the 15th Finance Commission had recognised this through a state-wise assessment of revenues and expenditures and had recommended RDG accordingly. "In contrast, the 16th Finance Commission has adopted a one-size-fits-all approach without assessing the specific financial needs of individual states," he said. Amid the growing concerns over discontinuation of RDG,Union minister for culture and tourism, Gajendra Singh Shekhawat, clarified that fiscal discipline is the sustainable path for states. Shekhawat, while addressing the media in Shimla on Sunday, said, "RDG was always conceived as a temporary andtransitional support mechanism, first introduced on the recommendation of earlier Finance Commissions to help fiscally stressed states manage short-term gaps. It was never meantto be a permanent entitlement." He emphasized that Himachal received significantly higher RDG support in recent years compared to earlier cycles, but with a clear indication that states must strengthen their own revenue systems and adopt fiscal discipline going forward. He said fiscal deficit is fundamentally the gap between revenue and expenditure and cannot be addressed through political blame-shifting but through structural financial reforms....