Prime Minister Kim Min-seok said Monday that the government will concentrate its fiscal resources on sectors with growth potential such as artificial intelligence, while cutting spending in less productive areas.

Speaking at a National Assembly budget committee session, Kim said the goal is to use public finances as a “pump” to drive economic growth.

He criticized the previous administration for weakening the tax base by clinging to tax cuts and failing to reignite growth despite difficult conditions.

Kim also acknowledged shortcomings in the execution of the budget, citing two consecutive years of major tax revenue shortfalls and limited support for struggling households.

He pledged performance-based fiscal management to create a cycle of stability, growth and sustainability. 

He also said some of last year’s official development assistance spending is now under review and investigation after it increased drastically under the previous administration.