Despite Elon Musk’s aggressive cost-cutting initiatives, US federal spending has not slowed down. In fact, it climbed to a record $603 billion last month, according to new Treasury data.
That raises some uncomfortable questions about Musk’s Department of Government Efficiency (Doge) and how it has been touting more than $100 billion in savings.
For all the boasting by the billionaire-headed department, few agencies recorded any significant reductions in the first full month of the new administration. Overall spending rose $40 billion from the same period last year, marking a 7 per cent increase, Financial Times reported.
Musk and his team, operating under the Doge initiative, have made deep inroads into federal agencies, including the State and Health departments, as well as branches of the Treasury. Thousands of federal workers have been laid off or suspended, and numerous government contracts and grants have been cancelled.
Big layoffs without big savings
Musk has claimed that Doge is on track to slash $1 trillion from the federal budget, asserting that cuts are being identified at a rate of $4 billion per day. However, the latest Treasury report indicates that major spending categories have remained largely untouched. The Department of Education recorded a $6 billion reduction, but officials noted that other agencies saw little to no savings.
The Treasury referred further questions on spending reductions to Doge. A spokesperson for Doge did not immediately respond to a request for comment.
Content retrieved from: https://www.firstpost.com/world/musk-wields-doge-chainsaw-but-trump-administrations-federal-spending-reaches-record-high-13871155.html.
