Rahul writes to Sitharaman over ECHS funding, disability pension tax

Leader of the Opposition in the Lok Sabha Rahul Gandhi has written to Finance Minister Nirmala Sitharaman seeking intervention on two issues affecting armed forces personnel.

In his letter, Rahul called for adequate funding for the Ex-Servicemen Contributory Health Scheme (ECHS) and the withdrawal of newly introduced income tax provisions on disability pension. A copy of the letter has also been sent to Defence Minister Rajnath Singh.

Rahul alleged that the ECHS had been facing a severe funding crunch, with over Rs 12,000 crore in medical bills pending. He said the current budget allocation was nearly 30 per cent below requirements, leading several empanelled hospitals to opt out due to non-payment. As a result, veterans were either paying out of pocket or delaying treatment for serious illnesses, including cancer.

He further pointed out that the Finance Bill 2026 proposes taxing disability pensions if a soldier is retained in service. This is the first time since 1922 that disability pensions would be taxed. Disability pensions, he argued, were intended to compensate servicemen injured in the line of duty and should not be treated as taxable income.