Rahul Gandhi urges Sitharaman to address ECHS fund crunch, scrap tax on disability pensions

New Delhi, Feb 28
Leader of Opposition (LoP) in the Lok Sabha, Rahul Gandhi, on Saturday wrote to Finance Minister Nirmala Sitharaman, raising concerns over what he described as serious funding gaps in the Ex-Servicemen Contributory Health Scheme (ECHS) and urging the withdrawal of newly introduced income tax provisions on disability pensions.

In his letter to the Finance Minister, Gandhi called for immediate intervention on two key issues impacting armed forces personnel and veterans.

"I write to request your action on two issues affecting armed forces personnel: adequate funding to the Ex-Servicemen Contributory Health Scheme (ECHS); and withdrawal of newly introduced income taxes on disability pensions," he stated.

Highlighting the financial strain on the health scheme, Gandhi said the ECHS, which is intended to provide quality healthcare to veterans, is currently facing an acute resource crunch.

"The Ex-Servicemen Contributory Health Scheme is designed to give veterans the best healthcare. Today, it is suffering from severe funding shortages. Over Rs 12,000 crore in medical bills remain pending, budget allocation is nearly 30 per cent below requirement, and hospitals are opting out due to non-payment," he wrote.

He further noted that the shortfall has had a direct impact on veterans and their families. "Veterans are being forced to pay from their own pockets, or even delay treatment for serious diseases like cancer. Those who served the country are feeling neglected in their hour of need," Gandhi said.

The Congress leader also referred to the Finance Bill 2026, expressing objection to a proposal that, according to him, seeks to tax disability pensions if a soldier continues in service. "This is the first time since 1922 that disability pensions are being taxed. Disability pensions are meant to provide relief to servicemen who suffer injuries, and should not be thought of as income," he said.

Gandhi argued that taxing such pensions would be unfair, particularly in cases where injured personnel choose to remain in service. "Moreover, when a disabled serviceman chooses or is requested to continue in service, he or she is selflessly serving India despite sustaining injuries. It is insulting to tax what should be praised," he added.

Referring to his recent interaction with former military personnel, Gandhi said the concerns were conveyed to him by a delegation of ex-servicemen.

"A delegation of ex-servicemen I met brought these issues to my attention. It was painful to hear their feelings of being let down by their own government. I am sure you will agree that our brothers and sisters who serve in the armed forces deserve every support from a grateful nation. Therefore, I urge you to clear all pending ECHS liabilities with adequate budget support and restore full income tax exemption on disability pensions," he wrote