Musk lowers expectations for government efficiency department, federal spending cut target may drop to $1 trillion
ChainCatcher news, according to Caixin, Musk admitted during an interview with former Clinton administration advisor and political strategist Mark Penn that the proposed "Department of Government Efficiency" (DOGE) in the U.S. would find it difficult to achieve the previously promised $2 trillion reduction in federal spending. This stands in stark contrast to his statement at a Trump campaign rally last October, where he claimed to "cut at least $2 trillion." Musk explained that setting a high target is meant to ensure actual results, stating, "If we try to cut $2 trillion, we can achieve $1 trillion in results."According to data from the U.S. Treasury, the fiscal year 2024 spending is $6.75 trillion, while the government's discretionary budget is only $1.7 trillion. Musk stated that if the budget deficit could be reduced from $2 trillion to $1 trillion and economic potential is unleashed to allow the output of goods and services to keep pace with the growth of the money supply, inflation control could be achieved. Experts predict that Musk and Ramaswamy may focus their cuts on social welfare programs such as Medicaid.
