Rahul Gandhi Flags Serious Deficiencies in ECHS, Questions Government Over Funding Gaps and Veteran Welfare

Gandhi stated that he recently met ex-servicemen injured in the line of duty while defending the country at the ‘Jansansad’, where they raised serious concerns about the scheme. According to him, these included delays in reimbursement, shortages of medicines, hospitals refusing treatment, and instances of hospitals being dropped from the scheme due to non-payment of outstanding dues. Highlighting the scale of the issue, Gandhi pointed out that more than 7.2 million ex-servicemen and their families depend on the scheme for healthcare.

He further said that when he raised the issue in Parliament, the Modi government attempted to evade his questions. He alleged that the government possesses no information regarding outstanding dues and has failed to provide any clear explanation for delays, merely acknowledging that such delays occur.

Referring to findings by the Comptroller and Auditor General of India, Gandhi said the audit body had observed that the ECHS is not receiving adequate funding. He criticised the government for refusing to explain why necessary funds for ex-servicemen’s healthcare are not being allocated. Gandhi also raised concerns regarding tax exemptions for disabled ex-servicemen, stating that the Finance Bill proposes taxation of disability pension if a soldier chooses to continue in service, calling it a move that penalises those who continue serving the nation.

“Our brave armed forces sacrifice everything for the country. The government should, at the very least, accord them the respect and support they truly deserve,” Gandhi said, while sharing questions he had posed in the Lok Sabha.

Gandhi had asked the Ministry of Defence whether budgetary allocations under ECHS had been made over the past ten years, seeking year-wise details of overall allocations, total pending dues, newly added dues annually, and any shortfalls. He also questioned whether the recent CAG audit report had pointed out a failure to provide required budgetary allocations and sought reasons for the same.

Additionally, he asked about steps taken to ensure veterans are not denied medical treatment due to pending dues under ECHS, and whether there exists any differentiation in income tax exemption on disability pension across categories of disabled ex-servicemen, along with the rationale behind it. He further questioned whether the government intends to restore full income tax exemption on disability pension for all disabled ex-servicemen.

In a written response, Minister of State for Defence Sanjay Seth stated that the ECHS provides cashless and capless healthcare to ex-servicemen and eligible beneficiaries through a wide network of polyclinics and empanelled hospitals. He noted that the number of such facilities has increased in recent years to improve healthcare access.

Addressing concerns over dues, Seth said the processing of medical bills for empanelled hospitals and beneficiaries is a dynamic and time-consuming process. He explained that bills generated in the final months of a financial year are typically cleared in the next financial year, leading to cyclic carry-forward liabilities. He added that as annual ECHS expenditure continues to grow, occasional constraints in fund flow may impact payment cycles. However, he said continuous efforts are being made to manage resources and coordinate with stakeholders to ensure uninterrupted medical services.

On the issue of taxation, Seth clarified that income tax is not being deducted from disability pension for retired personnel receiving applicable disability compensation, in compliance with a Supreme Court of India order. He stated that exemption for disability pension granted to armed forces personnel invalided out of service due to disability attributable to or aggravated by military service has existed since the framework of the Income Tax Act, 1922.

He added that when the Income Tax Act, 1961 came into force, the exemption continued through repeal and savings provisions. However, with the enactment of the Income Tax Act, 2025, earlier enactments and related savings provisions ceased to operate. In the absence of explicit provisio

ns, the exemption would have lapsed. Seth stated that the current provision has been introduced to ensure continuation of the same exemption, including its scope and conditions.

The exchange underscores growing scrutiny over the functioning and funding of ECHS, raising broader concerns about healthcare access and financial safeguards for millions of ex-servicemen and their families across the country.