‘America will go bankrupt if…’: Elon Musk flags concern over…, says Trump govt must…

Elon Musk raised the issue of the country's gigantic budget deficit, which has surged to over USD 1.8 trillion in the last financial year.

Tesla CEO Elon Musk, the world’s richest man, who was appointed as the chief of the newly-formed Department of Government Efficiency (DOGE) by US President Donald Trump, has expressed concern over the US’ budget deficit, stating that the country is heading towards bankruptcy if government does not cut down its expenditure.

During a discussion in the White House on Tuesday, Elon Musk raised the issue of the country’s gigantic budget deficit, which has surged to over USD 1.8 trillion in the last financial year. The tech mogul also pointed out the high interest rates US was paying on loans, and asserted that cutting down federal expenditure was not optional but a necessary step to revive and protect the US economy.

Meanwhile, Musk’s comments come at a time when the Trump administration is at loggerheads with US courts, many of which have questioned the constitutional legality of the White House’s cost-cutting measures. Trump’s sweeping plans have sparked legal battles across the US, with his decisions resulting in several federal agencies being shut down and employees being sent home.

Many have also questioned Musk’s role as the head of the DOGE, with critics pointing to many of his companies having massive contracts with the US government. The DOGE reform team has also raised concerns among critics by gaining access to sensitive data through the US Treasury.

What is DOGE?

The Department of Government Efficiency (DOGE), officially known U.S. DOGE Service Temporary Organization, is an initiative launched by the second Donald Trump administration with the stated purpose of reducing wasteful and fraudulent federal spending, and eliminating excessive regulations.

Led by tech billionaire Elon Musk, DOGE is not a Cabinet-level department of the United States government, but a temporary contracted government organization under the United States DOGE Service, formerly known as the United States Digital Service.

The Trump administration has defended the DOGE initiative, saying it aims to “modernize federal technology and software to maximize governmental efficiency and productivity”. The agency was created by an executive order by President Donald Trump on January 20, 2025,and is scheduled to end on July 4, 2026.

DOGE’s creations and subsequent actions have stirred controversy, triggering protests and lawsuits, with critics describing its actions of dissolving agencies and seizure of congressionally authorized funds as a violation Article 1 of the United States Constitution and creating a potential “constitutional crisis”.