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Rahul Gandhi wrote to Finance Minister Nirmala Sitharaman on ECHS fund crisis and taxation on disability tax
Leader of Opposition in the Lok Sabha, Rahul Gandhi, has written to Union Finance Minister Nirmala Sitharaman seeking urgent intervention on two key issues affecting armed forces personnel: severe fund shortages under the Ex-Servicemen Contributory Health Scheme (ECHS) and the proposed taxation of disability pensions under the Finance Bill 2026.
In his letter dated February 25, Gandhi flagged what he described as a deepening crisis in the ECHS, a healthcare scheme meant to provide medical support to ex-servicemen. He claimed that over Rs 12,000 crore in medical bills remain pending, with the current budget allocation nearly 30 per cent below the requirement. As a result, several empanelled hospitals are reportedly opting out due to non-payment of dues.
The Congress MP said the financial strain has forced many veterans to bear medical expenses out of pocket or delay treatment for serious illnesses, including cancer. “Those who served the country are feeling neglected in their hour of need,” he wrote, urging the finance ministry to clear all pending liabilities and ensure adequate budgetary support to restore the scheme’s functionality.
Gandhi also raised strong objections to a provision in the Finance Bill 2026 that proposes to tax disability pensions in cases where injured soldiers are retained in service. Calling it unprecedented, he noted that disability pensions have not been taxed since 1922.
“Disability pensions are meant to provide relief to servicemen who suffer injuries and should not be treated as income,” Gandhi stated in the letter. He further argued that taxing such pensions is “insulting,” particularly when disabled personnel continue to serve despite their injuries.
Referring to a delegation of ex-servicemen he recently met, Gandhi said it was “painful” to hear their accounts of feeling let down by the government. He urged Sitharaman to restore full income tax exemption on disability pensions and to immediately address the funding shortfall under ECHS.
A copy of the letter has also been marked to Defence Minister Rajnath Singh.