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Kathmandu. Billionaire technologist Elon Musk, who US President Donald Trump has appointed to lead a federal cost-cutting effort, has said that the US will go “bankrupt” without budget cuts. Musk leads the effort under the ‘Department of Government Efficiency (DOGE).
“The US will go ‘bankrupt’ without budget cuts,” he said, informing Trump of his study. President Trump has signed executive orders in recent weeks aimed at reducing federal spending. In particular, Musk has set a goal of higher interest payments on the public debt, citing the country’s budget deficit, which topped $1.8 trillion last fiscal year.
“It’s not optional for Washington to reduce federal spending, it’s a necessary action,” he told reporters after meeting with President Trump. However, his comments come as the Trump administration finds itself on a collision course with US courts as federal judges question the legality of the White House’s cost-cutting measures. Trump’s plan effectively shut down some federal agencies and sent employees home, sparking legal battles across the country.
Many of the lawsuits seek to block what opponents describe as an illegal power grab. Meanwhile, Musk’s team has been moving through federal agencies. It is freezing aid programs and pushing for workforce cuts. An executive order outlining the scope of the DOGE includes details of a plan to reduce the federal workforce.
The plan directs agencies to hire just one employee for every four who leave. The order would require each agency head to consult with the DOGE when deciding which vacancies to fill. Asked to respond to the criticism, Musk said, “Americans voted for Trump on the issue that Republican leader Trump raised during the election campaign: ‘major government reform.’ The government will follow through.” Musk, who also heads SpaceX and Tesla, has said he wants to be as transparent as possible when asked about potential conflicts of interest.
In the US, Musk has come under criticism, particularly from opposition Democrats, for allegedly taking extensive advantage of the US government through his companies. Protests have been raised that the DOGE reform team has gained access to sensitive data and records through the US Treasury.
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