Rahul Gandhi, the Leader of the Opposition in the Lok Sabha, has formally petitioned Finance Minister Nirmala Sitharaman to address what he describes as the "insulting" taxation of disability pensions and a "severe funding crisis" within the military’s healthcare system.
In a letter also copied to Defence Minister Rajnath Singh, the Congress leader highlighted two specific grievances brought to his attention by a delegation of veterans. He argued that those who have put their lives on the line for the nation are currently being "let down" by the government in their hour of need.
The Ex-Servicemen Contributory Health Scheme (ECHS), designed to provide top-tier medical care to veterans, is reportedly on the brink of collapse due to a massive backlog of unpaid bills.
Gandhi noted that the current budget allocation is nearly 30 per cent below what is required.
More than ₹12,000 crore in medical bills remain pending.
Many private hospitals are opting out of the scheme because they aren't being paid, forcing veterans — some suffering from life-threatening illnesses like cancer — to pay out of their own pockets or delay vital treatment.
Gandhi took particular aim at a proposal in the Finance Bill 2026 which seeks to tax the disability pensions of soldiers who choose to continue their service despite their injuries.
"This is the first time since 1922 that disability pensions are being taxed," Gandhi wrote. "When a disabled person chooses to continue in service, he or she is serving the nation despite sustaining injuries. It is would be an insult to tax what should be praised."
He insisted that these payments should never be classified as "income," as they are meant to provide relief for physical hardship and sacrifice, not to serve as a revenue stream for the exchequer.
The letter concludes with a plea for the government to honour its "moral obligation" to the armed forces. Gandhi has urged the Finance Minister to:
Clear all pending ECHS liabilities with an immediate injection of funds. Restore full income tax exemptions on disability pensions to prevent further alienation of the veteran community.
"It was painful to hear their feelings of being let down by their own government," Gandhi remarked, calling for a return to the "support of a grateful nation."
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