Finance minister Nirmala Sitharaman told Parliament on Monday that the central government is not considering any proposal for a complete loan waiver for farmers.

She said the focus remains on improving farmers’ financial condition through existing credit and support mechanisms.

Under the Kisan Credit Card (KCC) system, crop loans of up to Rs 3 lakh are available at subsidised interest rates through the Modified Interest Subvention Scheme (MISS), with added benefits for timely repayment.

The government has also increased the limit for collateral-free short-term agricultural loans from Rs 1.60 lakh to Rs 2.00 lakh.

Sitharaman said efforts are being made to ensure steady credit flow to agriculture under the Priority Sector Lending framework set by the Reserve Bank of India (RBI).

She also pointed to other measures such as crop insurance and direct benefit transfers under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme.

Responding to another query in the Lok Sabha, she spoke about tax exemptions on disability pensions received by armed forces personnel. She said the provision has been in place for a long time.

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, Sitharaman said.

She said the exemption continued under the Income-tax Act, 1961, through repeal and savings provisions.

"With the enactment of the Income-tax Act, 2025, the earlier enactments pertaining to the Income-tax Act, 1922, and related savings provisions ceased to operate. Therefore, in the absence of an express provision in the new Act, the exemption would have lapsed," the minister said.

She added that the current law ensures continuity. The present provision has been included to ensure the continuation of the same exemption that existed earlier, including its scope and conditions, she said.

Sitharaman said there has been no change in the status of the exemption. The finance minister emphasised that there is no discontinuation of the said tax exemption.

"On the contrary, the Finance Bill, 2026, proposes to explicitly provide for a specific exemption in respect of disability pensions under the Income-tax Act, 2025," she said.

She also gave data, stating that as of January 31, 2026, 1,47,263 armed forces personnel had retired with disability, while 89,598 personnel were receiving disability pension after being invalided out.

She said the provisions under the Income-tax Act, 2025, are meant to continue the earlier legal position, so a grandfathering clause is not required.

The medical fitness of serving personnel is carried out annually, she said, adding that the personnel detected with disease/deformity/injuries/medical conditions are placed in the Low Medical Classification and are also reviewed periodically depending on the service-specific orders.

She said medical checks include physical and systemic examinations, along with tests based on the role of the personnel.

On detection of a condition, the service specialist opines on the medical condition, employment restriction and medical classification of the personnel, Sitharaman said.

The medical classification of a person is finalised by the Medical Board, constituted as per para 418 and 419 of Regulations for the Medical Services of the Armed Forces-2010 (revised version).

"Personnel in permanent medical classification, if found unfit for discharging of military duties, may be invalided out on medical grounds by an Invaliding Medical Board [Army Order 513/71, NO 7/14 & IAP 4303 (6th Edition)]. The Invaliding Medical Boards carry out assessment of impairment of such individuals in accordance with GMO-2023, and the entitlement of the impairment is decided by Service HQs as per ER-2023 and GMO 2023," she said.

She added that medical boards only assess conditions and set restrictions needed for recovery and to prevent further deterioration.

The minister said that promotion policies for armed forces officers are handled by their respective service branches.