ISLAMABAD, June 3: The government has decided not to introduce any new tax in the budget for 2003-4 and mobilise resources by broadening the present tax base and lowering tax rates.

A senior official of the ministry of finance told Dawn here on Tuesday that the new budget would also have some concessions for 10 to 15 per cent vulnerable pensioners and widows.

In this regard, a package of relief, including some increase in the salaries of government employees, was expected to be presented to the prime minister for approval on Wednesday.

The official reiterated that no increase in the defence budget was being made. But, he added, the requirements of the armed forces would be adequately met.

He further said that it had also been decided to take action against two banks which were offering loans generously to some influential people who were investing these loans in various national saving schemes for getting higher interest rates.

The new budget, he said, would also give a plan to remove Rs100 billion annual losses of the public sector corporations. In this regard, the official said, additional Rs8 billion would be given to the Zarai Taraqqiati Bank, formerly known as the Agricultural Development Bank of Pakistan (ADBP).

He said poverty related and social sector spending was being increased from Rs162 billion to Rs185 billion in the budget for fiscal 2003-4.