Army Asks MOD to Move ECHS to Defence Pension Fund

New Delhi. In a move aimed at lessening the burden on its financial resources, the Army asked the Defence Ministry to remove the allocation for the Ex-Servicemen Contributory Health Scheme (ECHS) from its budget and move it under the defence pension fund, which is a separate entity within the defence budget.

ads

The government made funding of the medical scheme for retired personnel as part of the army’s revenue budget from this fiscal year. While the purpose of making the change was for better management of the scheme, the resources needed are immense and could put pressure on the army’s procurement plans, officials said.

The ECHS was allocated about Rs 3,000 crore less than what it had sought for the current fiscal year. The biggest challenge of the scheme is that its funds are not growing proportionately to the population it is serving.

Due to periodic revision of pensions, the pension fund saw high growth and bringing the ECHS under it will ensure that the scheme has adequate funds all times, the sources said. If the ECHS funding is shifted to the defence pension budget, it will not put pressure on the army’s revenue budget.

The developments come in the backdrop of the ECHS regularly facing a shortage of funds, leading to a dearth of medicines, especially critical life-saving ones, for the more than 50 lakh veterans and their dependants.

big bang

For the ongoing financial year, the ECHS had projected a requirement of about Rs 6,000 crore, but was given only about Rs 3,200 crore, almost the same as the previous year. Officials said this fund would be inadequate to meet requirements, because the ECHS had a committed liability of Rs 2,000 crore for the payment of hospital bills for the previous financial year. It has also used up its vote-on-account budget, which was 33% of the total funds allocated for the year, during the first few months itself. This will leave very little funds with it and could result in a shortage of medicines later, they said.

More like this

Airbus Reports Strong Helicopter Orders in 2025

Marignane, France. Airbus Helicopters logged 544 gross orders (net:...

Elbit Systems Awarded $228 Million Contract to Supply Iron Fist APS for US Army Bradley Fighting Vehicle

Tel Aviv: Israeli company Elbit Systems has been awarded...

Berlin’s Blackout and the Grey Zone of Climate Violence

The blackout that plunged south-west Berlin into darkness in early...

India–EU Mega Trade Deal Boosts Exports Amidst Political Risk in Europe

The proposed major trade deal between the European Union...

Boeing Sukanya Programme STEM Labs in Odisha Inaugurated by Minister Dharmendra Pradhan 

Sambalpur. Minister of Education, Government of India, Dharmendra Pradhan, January...

Greenland and the Geopolitics of the Arctic Region

Following the military operation in Venezuela on January 3,...

Sakthi Aircraft Industries Enters Wings India 2026 with Focus on Pilot Training and Regional Connectivity

Hyderabad: Sakthi Aircraft Industries Pvt. Ltd. (SAIPL), a collaboration...

Oil, Sanctions, and Power: How Energy Became the Sharpest Weapon of War

For most of history, war was decided on battlefields....
Indian Navy Special Edition 2025spot_img