Elon Musk Revises Budget-Cutting Goal: $1 Trillion Instead of $2 Trillion

TL/DR –

Elon Musk, co-head of the Department of Government Efficiency (DOGE), has backtracked from his earlier estimate of finding $2 trillion in savings from the US federal budget. The tech billionaire now believes there is only a good chance of cutting half the initial amount. Musk, leading the budget-slashing effort alongside Vivek Ramaswamy, had been widely criticised by financial experts for his statement as the entire discretionary budget sits at $1.7 trillion.

Elon Musk Rethinks $2 Trillion US Budget Cut for Trump Administration

Tech billionaire Elon Musk, co-head of the new advisory body – Department of Government Efficiency (DOGE), has now said that his previously projected $2 trillion savings on behalf of President-elect Donald Trump is no longer likely. This goal was set earlier in a bid to cut government spending.

In an interview with political strategist Mark Penn, Musk stated that the $2 trillion figure was a “best-case outcome,” and he now believes there’s only a “good shot” at halving that amount.

This corrected estimate significantly deviates from Musk’s previous assertions. He initially claimed at a New York rally that he could successfully trim the federal budget by $2 trillion. Many budget experts have dismissed this figure as unachievable, pointing out that the entire discretionary budget is only $1.7 trillion.

Musk, assisted by former Republican presidential candidate Vivek Ramaswamy, is spearheading DOGE’s budget-cutting initiative. Trump named them to lead this department, which is expected to suggest recommendations to the White House for his second term.

Experts speculate that to reach substantial savings, Musk and Ramaswamy would need to propose cuts to mandatory programs like Medicaid. Musk himself has warned that such cuts could mean “hardship” for some.

On the topic of Musk’s budget-cutting plans, Penn, a former advisor to President Clinton, asked if $2 trillion was still a realistic goal. Musk maintained optimism, suggesting a $1 trillion cut is feasible and could result in “an epic outcome.”

According to Musk, reducing the budget deficit by $1 trillion and stimulating economic growth can prevent inflation, leading to a positive outcome for the economy. Although no specific cuts have been identified, Musk sees a “target-rich environment for saving money.”

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