Rahul Gandhi, Leader of Opposition in the Lok Sabha, has written to Union Finance Minister Nirmala Sitharaman urging urgent intervention on what he described as two critical issues affecting armed forces personnel – severe funding shortages under the Ex-Servicemen Contributory Health Scheme (ECHS) and the proposed taxation of disability pensions under the Finance Bill 2026.
In his letter, Gandhi stated that over Rs 12,000 crore in medical bills under the Ex-Servicemen Contributory Health Scheme remain pending, while current budget allocation is nearly 30% below requirement.
He warned that hospitals are opting out of the scheme due to non-payment, forcing veterans to either pay out of pocket or delay critical treatment.
“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,” he wrote.
The Leader of Opposition urged the Finance Minister to clear all pending ECHS liabilities and provide adequate budgetary support to restore confidence in the scheme, which was designed to provide comprehensive healthcare to ex-servicemen and their dependents.
He said a delegation of ex-servicemen had brought the matter to his attention, describing their grievances as “painful” and reflective of a sense of being “let down by their own government.”
Gandhi also raised strong objection to a provision in the Finance Bill 2026 that proposes to tax disability pensions if the soldier continues in service after sustaining injury. He pointed out that this would be the first time since 1922 that disability pensions are subjected to income tax.
“Disability pensions are meant to provide relief to servicemen who suffer injuries, and should not be thought of as income,” he stated, adding that taxing such pensions would be “insulting” to personnel who choose to continue serving despite sustaining disabilities.
“When a disabled serviceman chooses or is requested to continue in service, he or she is selflessly serving India despite sustaining injuries,” the letter noted.
Calling members of the armed forces “brothers and sisters who deserve every support from a grateful nation,” Gandhi urged the Finance Minister to restore full income tax exemption on disability pensions and ensure adequate financial support for ECHS.