New York: As talk about the United States of America’s (USA) mounting debts are doing the rounds, especially after the elections earlier this month, Elon Musk has warned that the world’s largest economy is on the brink of bankruptcy.
The Department of Government Efficiency (DOGE), formed by President-elect Donald Trump, said that the US government generated $4.47 trillion in revenue during the fiscal year 2023 but spent $6.16 trillion, thus resulting in a $2.31 trillion deficit.
DOGE, which will be headed by billionaires Musk and Vivek Ramaswamy, revealed in a post on X on Saturday that the national debt grew by $1 trillion in four months, taking the total volume past $36 trillion and adding to concerns of financial instability.
DOGE stressed that the US has not seen a budget surplus since 2001, and urged immediate action to reverse the trend.
Musk, commenting on the data provided by DOGE, wrote, “The US is rapidly moving toward bankruptcy.”
To tackle the debt crisis, the Trump administration, which will assume charge in January 2025, has announced plans to cut $500 billion in government spending through DOGE.
The world’s richest person Musk and entrepreneur Ramaswamy have been tasked with reducing expenditures across multiple sectors, including healthcare, children’s grants, and NASA’s budget.
Trump, who will be President of USA for his second term, is confident about DOGE doing the job.
“These two visionaries (Musk and Ramaswamy) will pave the way for eliminating bureaucracy, cutting excessive regulations, reducing wasteful spending, and restructuring federal agencies – key steps to achieve the ‘Save America’ movement’s goals,” Trump said.