Rahul writes to FM over pending ECHS dues, proposed tax on disability pensions

New Delhi: The Leader of Opposition Rahul Gandhi recently raised the issue of the funding crisis in ECHS, the imposition of taxes on disability pensions in a letter to the Finance Minister.

The Congress Lok Sabha member wrote to Union Finance Minister Nirmala Sitharaman. He raised the issue of the funding crisis in the Ex-Servicemen Contributory Health Scheme (ECHS) as well as the imposition of taxes on disability pensions for armed forces personnel.

Gandhi, in his letter dated February 25, requested the finance ministry to address the issue of the funding crisis in the health care of the armed forces.

He also requested the finance ministry to reconsider the provisions of the Finance Bill, 2026, about disability pensions.

The letter was shared on the microblogging platform by Supriya Bharadwaj, National Media Coordinator of the Indian National Congress, on Saturday.

It is reported that the Ex-Servicemen Contributory Health Scheme, which was launched in 2003, provides cashless health care facilities to ex-servicemen, pensioners, and dependents through a network of empanelled hospitals.

“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.”

In the letter, Gandhi emphasises that there is a funding gap that is causing veterans to pay out of pocket or delay treatment for serious diseases like cancer. “Veterans are paying out of pocket or delaying treatment for serious diseases like cancer. Those who served our country feel neglected when they need help most,” he stated.

ECHS is operated under a contributory system, which means that ECHS personnel pay once after retirement, and the rest of the funding comes from the government.

Veterans’ organisations have raised issues regarding delays in reimbursements to private hospitals, with some of them stopping services because of non-payment of dues.

Gandhi has also opposed some sections of the Finance Bill, 2026, which will impose taxes on disability pensions if a soldier is still in service after being injured.

“This is the first time since 1922 that disability pensions will be taxed,” Gandhi stated.

Gandhi believes that these pensions are meant to ease the burden of those servicemen who are injured and should be appreciated, not taxed. “It is insulting to tax something that should be praised,” he wrote.

At present, disability pensions enjoy income tax exemption, especially for personnel invalided out of service due to disabilities that occurred during the course of duty. The move has caused concern among the armed forces, especially those in service despite being disabled.

However, Gandhi also revealed that he had been approached by a delegation of veterans who had brought the issues to his notice. “A group of ex-servicemen I met laid this out for me. It was painful to hear how let down they feel by their own government,” he said.

He also called for immediate corrective measures to be taken in the matter, saying that the Finance Minister should settle the liabilities at the earliest and also restore the income tax exemption for disability pensions. “Please clear all pending ECHS liabilities with proper Budget support and restore full income tax exemption on disability pensions,” he said.

The letter was also sent to the Defence Minister, Rajnath Singh.