Lok Sabha Question No. 4739 (UNSTARRED), answered on 2026-03-20
Subject: Budget for ECHS
Ministry: DEFENCE
Asked by: Shri Rahul Gandhi

## GOVERNMENT OF INDIA

## MINISTRY OF DEFENCE DEPARTMENT OF EX-SERVICEMEN WELFARE

## LOK SABHA UNSTARRED QUESTION No. 4739

TO BE ANSWERED ON 20 TH  MARCH, 2026

## BUDGET FOR ECHS

## 4739. SHRI RAHUL GANDHI:

Will the Minister of DEFENCE be pleased to state:

- (a)   whether   the   Government   has   made   budgetary   allocations   under   the   Ex-Servicemen Contributory Health Scheme (ECHS) during the last ten years and if so, the details thereof including year-wise overall budget allocation, the total dues pending, the new dues being added annually and the shortfall therein;
- (b) whether the recent audit report of the Comptroller and Auditor General (CAG) has pointed out a failure to provide ECHS with the required budgetary allocations and if so, the details thereof and the reasons therefor;
- (c) the steps taken by the Government to ensure that veterans are not denied medical treatment due to pending dues under ECHS;
- (d) whether there exists any differentiation in income tax exemption on disability pension for different   categories   of   ex-servicemen   with   disability   and   if   so,   the   details   thereof   and   the rationale therefor;
- (e) whether the Government proposes to restore full income tax exemption on disability pension for all disabled ex-servicemen; and
- (f) if so, the details thereof and if not, the reasons therefor?

| ANSWER                     | ANSWER             |
|----------------------------|--------------------|
| MINISTER OF STATE          | (SHRI SANJAY SETH) |
| IN THE MINISTRY OF DEFENCE |                    |

(a) to (c) The Ex-servicemen Contributory Health Scheme (ECHS) provides cashless and capless healthcare to Ex-servicemen and other eligible beneficiaries through a wide network of polyclinics and empanelled hospitals. The number of ECHS polyclinics and empanelled hospitals under ECHS has grown over the last few years to provide better healthcare to its beneficiaires. The budget allocation for ECHS for last 10 years is enclosed as annexure.

The processing of medical bills of emapanelled hospitals and individual beneficiaries is a dynamic and time taking process. Normally, bills generated in the last months of any Financial Year gets cleared in next Financial Year. This results in some cyclic carry forward liability. Further, since the annual ECHS expenditure is growing year on year, occasional constraints in fund flow may, at times impact the payment cycle. Continuous efforts are made to manage resources optimally and to address issues in coordination with the concerned stakeholders, so as to ensure uninterrupted medical services to ECHS beneficiaries.

(d) to (f) Income Tax is not being deducted from disability pension and superannuated/ retired pensioners in receipt   of applicable disability compensation in addition to Retiring/ Service Pension in compliance with Hon'ble Supreme Court Order dated 30.08.2019 in WP (C) No. 953/2019.

The exemption in respect of disability pension received by members of the armed forces who are invalided out of service on account of a disability attributable to or aggravated by military service has existed since the framework under the Income Tax-Act, 1922 as provided vide Notification No. 878-F (Income Tax) dated March 21, 1922. When the Income Tax Act, 1961 came into force, the exemption continued through the repeal and savings provisions.

With the enactment of Income-Tax Act, 2025, the earlier enactments pertaining to Income-Tax Act, 1922 and related savings provisions ceased  to operate. Therefore,  in the absence of an express provisions in the new Act, the exemption would have lapsed. The present provision has been included to ensure the continuation of the same exemption that existed earlier, including its scope and conditions.

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## ANNEXURE REFERRED TO IN REPLY TO PART (a) TO (c) OF LOK SABHA UNSTARRED   QUESTION   NO.   4739   TO   BE   ANSWERED   ON   20.03.2026 REGARDING BUDGET ALLOCATION FOR ECHS FOR 10 YEARS

| Financial Year (FY)   | Budget (in Crs)   |
|-----------------------|-------------------|
| 2016-17               | 2896              |
| 2017-18               | 3928              |
| 2018-19               | 3198              |
| 2019-20               | 5199              |
| 2020-21               | 5321              |
| 2021-22               | 4870              |
| 2022-23               | 6929              |
| 2023-24               | 9880              |
| 2024-25               | 10928             |
| 2025-26               | 11000*            |

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