CoinVoice has learned from a report by Caixin that Musk admitted in an interview with former Clinton administration advisor and political strategist Mark Penn that the proposed U.S. 'Department of Government Efficiency' (DOGE) is unlikely to achieve the previously promised $2 trillion federal spending cut target. 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 higher goal is meant to ensure actual results, saying, 'If we try to cut $2 trillion, we can achieve $1 trillion in results.'
According to data from the U.S. Treasury Department, fiscal year 2024 spending is projected to be $6.75 trillion, while the government's discretionary budget is only $1.7 trillion. Musk stated that if the budget deficit can 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 can be achieved. Experts predict that Musk and Ramaswamy may focus budget cuts on social welfare programs such as Medicaid.