Source: Financial Associated Press

Elon Musk recently stated that the proposed US “Department of Efficiency” (DOGE) is likely to be unable to achieve the highest preset goal of cutting US$2 trillion. of federal spending.

On Wednesday (January 8) local time, Musk accepted an interview with strategist Mark Penn. Payne served as an adviser to former U.S. President Bill Clinton, who briefly balanced the federal budget toward the end of his term.

In the latest interview, Payne asked Musk, "Now that you study it carefully, do you still think that $2 trillion is a realistic number?"

Musk responded, “We will strive to achieve US$2 trillion. This is the best outcome. "If we try to (cut) US$2 trillion, we can achieve US$1 trillion," he explained. /p>This means that Musk’s commitment has been significantly downgraded. In October last year, Musk stated at Trump’s campaign rally that he could and would significantly cut spending, “at least $2 trillion from the federal budget.”

According to data from the U.S. Treasury Department, U.S. spending in fiscal year 2024 will be $6.75 trillion. According to Musk at the time, this was equivalent to cutting spending by nearly a third, a goal that many budget experts also considered unrealistic because the discretionary budget was only $1.7 trillion.

In November last year, after Trump won the election, he announced on social media that Musk would co-lead the proposed Department of Efficiency with Vivek Ramaswamy after he became president. But it should be noted that the department has no official authority and is expected to only make budget cuts recommendations to the White House.

Musk emphasized in the exclusive interview that this was not an admission of failure in advance, and that he could still help Trump achieve "epic results."

“If we can reduce the budget deficit from $2 trillion to $1 trillion, unlock the economy’s potential for further growth, and allow the output of goods and services to keep pace with the growth of the money supply, then There would be no inflation, so it would be an epic result." Payne also asked Ma. Musk did not specify specific measures to determine whether Musk had set a reduction target. He only responded generally, "This will be a very targeted money-saving environment."

Some experts said, In order to cut spending, Musk and Ramaswamy may take action on Medicaid (Medicaid), the "health insurance for the poor". Musk has previously warned that spending cuts could mean "misery" for some.