Latest news with #fiscalreform
Daily Mail
3 days ago
- Business
- Daily Mail
Elon Musk hammers large-scale government spending
Elon Musk says most of the savings made by the Department of Government Efficiency (DOGE) will be wiped out within a year by President Donald Trump's freshly unveiled 'big, beautiful bill.' Musk made the astounding comments during a blistering interview aired on Sunday despite initially declaring he only wanted to avoid discussing 'presidential policy' and stick to 'spaceships'. In a previously released clip last week, Musk took aim at Trump's bill saying that he didn't think it could be both big and beautiful - just one or the other. Speaking just days after officially leaving his advisory post, Musk warned that Trump's sweeping legislation would quickly obliterate the fiscal reforms DOGE had fought for. 'I was, like, disappointed to see the massive spending bill, frankly, which increases the budget deficit, doesn't decrease it, and undermines the work that the DOGE team is doing,' Musk told CBS Sunday Morning. The 'big, beautiful bill,' hailed by Trump as the keystone of his second-term agenda, proposes $5 trillion in tax cuts alongside aggressive new spending hikes, lifting the debt ceiling by more than $4 trillion over two years. Despite its ambitions, reshaping tax law, overhauling immigration policy, and slashing Medicaid benefits in the future, Musk believes the bill is fundamentally at odds with the hard choices DOGE made to streamline government. 'I actually thought that, when this "big, beautiful bill" came along, it'd be like, everything he's done on DOGE gets wiped out in the first year,' CBS reporter David Pogue said bluntly. 'I think a bill can be big or it can be beautiful... but I don't know if it could be both. My personal opinion,' Musk laughed. It was a rare, public rebuke of Trump from Musk - a man once dubbed the president's 'first buddy' and hailed on the campaign trail as a 'truly incredible guy' by Trump himself. Musk spent $288 million supporting Trump's election and became a fixture at the White House, invited into Cabinet meetings and leading the charge to slash federal bureaucracy with DOGE's chainsaw-wielding fervor. But after months of political warfare, Musk's relationship with Washington, and with Trump, has cooled. Lawsuits and protests coupled with a 71 percent crash in Tesla profits followed DOGE's drastic cuts which saw 250,000 federal workers either fired or bought out across every federal department. Musk saw grants slashed and staffing culled at environmental agencies including the EPA and NOAA, despite decades of warning about the risks of climate change. Musk's personal net worth shrank by $100 billion, whilst government workers blamed DOGE for everything from Social Security delays to shuttered national parks. 'It's a bit unfair because DOGE became the whipping boy for everything,' Musk said. 'If there was some cut, real or imagined, everyone would blame DOGE. 'I've had people think that, like, somehow, DOGE is going to stop them from getting their Social Security check which is completely untrue,' he went on. 'We became essentially the DOGE boogeyman, where any cut anywhere would be ascribed to DOGE,' he said. Originally touting a $2 trillion savings goal, Musk later revised his target to $1 trillion. In the end, Musk claims DOGE managed to slash an estimated $175 billion before his departure - a far cry from his lofty ambitions. Yet now, with Trump's bill promising $3.8 trillion in added debt over the next decade, Musk believes even those savings would essentially be rendered meaningless. 'We do expect, over time, to achieve a trillion,' Musk explained on Friday during his farewell press conference, but it was also clear he knew that a huge wave of fresh spending would overwhelm any of DOGE's victories. Musk's departure came after CBS previewed the interview in which he criticized the bill in a clip that quickly went viral and reached the Oval Office within hours. The timing was no coincidence: Musk's formal 130-day stint as a 'Special Government Employee' was over - yet until that moment, Musk seemed to imply that he would continue contributing to White House efforts part-time. At an Oval Office farewell event on Friday, both men tried to downplay the rupture. Trump presented Musk with a ceremonial gold key, praising him as a 'very special person.' 'Elon's really not leaving,' Trump said. 'He's going to be back and forth, I think. I have a feeling. DOGE is gonna continue, just as a way of life,' Musk told CBS. 'I will have some participation in that, but as I've said publicly, my focus has to be on the companies at this point.' Sporting a noticeable black eye that he claimed to have received from a playful punch by his son 'Little X' he also made sure to praise the president one last time. The DOGE team is doing an incredible job. They're going to continue doing an incredible job, and I will continue to be visiting here and be a friend and advisor to the president,' Musk said. Despite the highly choreographed moment, there still appeared to be some tension. 'My frank opinion of the government is that it's just like the DMV that got big, okay?' Musk told CBS. 'When you say, "Let's have the government do something," you should think: "Do you want the DMV to do it?" 'It's not like I agree with everything the administration does. But we have differences of opinion. There are things that I don't entirely agree with. But it's difficult for me to bring that up in an interview because then it creates a bone of contention,' Musk explained. 'So then, I'm a little stuck in a bind, where I'm like, well, I don't want to, you know, speak up against the administration, but I also don't want to take responsibility for everything this administration's doing.' Following the CBS interview, Musk returned to SpaceX's Texas headquarters, where he attended the ninth test launch of Starship. As the massive rocket spiraled out of control and disintegrated upon re-entry, some observers couldn't help but note the symbolism. 'I can't guarantee success, but I can guarantee excitement,' Musk noted dryly.
Daily Mail
4 days ago
- Business
- Daily Mail
Musk takes hammer to Trump's 'big, beautiful bill' as he makes dire DOGE prediction after White House exit
Elon Musk says most of the savings made by the Department of Government Efficiency (DOGE) will be wiped out within a year by President Donald Trump 's freshly unveiled 'big, beautiful bill.' Musk made the astounding comments during a blistering interview aired on Sunday despite initially declaring he only wanted to avoid discussing 'presidential policy' and stick to 'spaceships'. In a previously released clip last week, Musk took aim at Trump's bill saying that he didn't think it could be both big and beautiful - just one or the other. Speaking just days after officially leaving his advisory post, Musk warned that Trump's sweeping legislation would quickly obliterate the fiscal reforms DOGE had fought for. 'I was, like, disappointed to see the massive spending bill, frankly, which increases the budget deficit, doesn't decrease it, and undermines the work that the DOGE team is doing,' Musk told CBS Sunday Morning. The 'big, beautiful bill,' hailed by Trump as the keystone of his second-term agenda, proposes $5 trillion in tax cuts alongside aggressive new spending hikes, lifting the debt ceiling by more than $4 trillion over two years. Despite its ambitions, reshaping tax law, overhauling immigration policy, and slashing Medicaid benefits in the future, Musk believes the bill is fundamentally at odds with the hard choices DOGE made to streamline government. 'I actually thought that, when this "big, beautiful bill" came along, it'd be like, everything he's done on DOGE gets wiped out in the first year,' CBS reporter David Pogue said bluntly. 'I think a bill can be big or it can be beautiful... but I don't know if it could be both. My personal opinion,' Musk laughed. It was a rare, public rebuke of Trump from Musk - a man once dubbed the president's 'first buddy' and hailed on the campaign trail as a 'truly incredible guy' by Trump himself. Musk spent $288 million supporting Trump's election and became a fixture at the White House, invited into Cabinet meetings and leading the charge to slash federal bureaucracy with DOGE's chainsaw-wielding fervor. But after months of political warfare, Musk's relationship with Washington, and with Trump, has cooled. Lawsuits and protests coupled with a 71 percent crash in Tesla profits followed DOGE's drastic cuts which saw 250,000 federal workers either fired or bought out across every federal department. Musk saw grants slashed and staffing culled at environmental agencies including the EPA and NOAA, despite decades of warning about the risks of climate change. Musk's personal net worth shrank by $100 billion, whilst government workers blamed DOGE for everything from Social Security delays to shuttered national parks. 'It's a bit unfair because DOGE became the whipping boy for everything,' Musk said. 'If there was some cut, real or imagined, everyone would blame DOGE. 'I've had people think that, like, somehow, DOGE is going to stop them from getting their Social Security check, which is completely untrue,' he went on. 'We became essentially the DOGE boogeyman, where any cut anywhere would be ascribed to DOGE,' he said. Originally touting a $2 trillion savings goal, Musk later revised his target to $1 trillion. In the end, Musk claims DOGE managed to slash an estimated $175 billion before his departure - a far cry from his lofty ambitions. Yet now, with Trump's bill promising $3.8 trillion in added debt over the next decade, Musk believes even those savings would essentially be rendered meaningless. 'We do expect, over time, to achieve a trillion,' Musk explained on Friday during his farewell press conference, but it was also clear he knew that a huge wave of fresh spending would overwhelm any of DOGE's victories. Musk's departure came after CBS previewed the interview in which he criticized the bill in a clip that quickly went viral and reached the Oval Office within hours. The timing was no coincidence: Musk's formal 130-day stint as a 'Special Government Employee' was over - yet until that moment, Musk seemed to imply that he would continue contributing to White House efforts part-time. At an Oval Office farewell event on Friday, both men tried to downplay the rupture. Trump presented Musk with a ceremonial gold key, praising him as a 'very special person.' 'Elon's really not leaving,' Trump said. 'He's going to be back and forth, I think. I have a feeling.' 'DOGE is gonna continue, just as a way of life,' Musk told CBS. 'I will have some participation in that, but as I've said publicly, my focus has to be on the companies at this point.' Sporting a noticeable black eye that he claimed to have received from a playful punch by his son 'Little X' he also made sure to praise the president one last time. 'The DOGE team is doing an incredible job. They're going to continue doing an incredible job, and I will continue to be visiting here and be a friend and advisor to the president,' Musk said. Despite the highly choreographed moment, there still appeared to be some tension. Treasury Secretary Scott Bessent, who reportedly clashed with Musk behind closed doors, stood stone-faced at the event. Trump wistfully that both him and Musk had endured 'slings and arrows'. He described Musk as someone he would keep close. 'Many of the things that we're working on right now, we're going to have to remember Elon as we find them,' Trump said. Following the latest bill announcement, Musk appears to be distancing himself from the administration's latest fiscal ambitions. 'My frank opinion of the government is that it's just like the DMV that got big, okay?' Musk told CBS. 'When you say, "Let's have the government do something," you should think: "Do you want the DMV to do it?" 'It's not like I agree with everything the administration does. But we have differences of opinion. There are things that I don't entirely agree with. But it's difficult for me to bring that up in an interview because then it creates a bone of contention,' Musk explained. 'So then, I'm a little stuck in a bind, where I'm like, well, I don't want to, you know, speak up against the administration, but I also don't want to take responsibility for everything this administration's doing.' Following the CBS interview, Musk returned to SpaceX's Texas headquarters, where he attended the ninth test launch of Starship. As the massive rocket spiraled out of control and disintegrated upon re-entry, some observers couldn't help but note the symbolism.
Malay Mail
28-05-2025
- Business
- Malay Mail
Ringgit rebounds against US dollar amid improved risk appetite
KUALA LUMPUR, May 28 — The ringgit rebounded to close higher against the US dollar today, supported by improved risk appetite for the local note despite prevailing global uncertainties. At 6pm, the local note rose to 4.2215/2275 versus the US dollar from Tuesday's close of 4.2345/2430. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the greenback is looking weaker at the moment despite stronger United States (US) economic data and the recent tariff-related trade policy shifts. 'Concurrently, foreign investor confidence in Malaysia has been gradually improving, underpinned by a pragmatic fiscal consolidation strategy that supports a cautiously optimistic outlook. 'The government remains prudent in advancing fiscal reforms, targeting a reduction in the budget deficit to approximately three per cent of gross domestic product (GDP) and maintaining the statutory debt limit at 65 per cent of GDP over the medium term,' he told Bernama. Afzanizam noted that US economic data looked favourable last night with the US Conference Board Consumer Confidence Index climbing to 98.0 points in May from 85.7 points in April. 'The postponement of the US tariff on the EU to July 9 also implies that the US President Donald Trump's administration is receptive and willing to negotiate for better terms,' he added. At the close, the ringgit traded higher against a basket of major currencies. It rose against the Japanese yen to 2.9271/9315 from Tuesday's close of 2.9425/9486, gained vis-à-vis the euro to 4.7838/7906 from 4.8053/8150 yesterday and appreciated against the British pound to 5.7028/7109 from 5.7352/7467 previously. The local note also traded higher against its Asean peers. It strengthened against the Singapore dollar to 3.2776/2825 from 3.2894/2963 on Tuesday and inched up against the Thai baht to 2.9355/9614 from 12.9365/9676 yesterday. The ringgit edged higher vis-à-vis the Philippine peso to 7.60/7.62 from 7.62/7.64 at yesterday's close and rose versus the Indonesian rupiah to 259.0/259.5 from 259.9/260.6 previously. — Bernama
Fox News
18-05-2025
- Business
- Fox News
Republicans ready late-night session on Trump's 'big, beautiful bill' after GOP mutiny
House lawmakers are being summoned to Capitol Hill late Sunday night as Republicans' self-imposed deadline to pass President Donald Trump's "big, beautiful bill" looms just days away. The House Budget Committee is meeting at 10 p.m. for a vote on advancing the wide-ranging legislation toward a chamber-wide vote later this week. Initial plans to advance the bill on Friday morning were upended in a mutiny by four members of the conservative House Freedom Caucus – Reps. Chip Roy, R-Texas, Ralph Norman, R-S.C., Josh Brecheen, R-Okla., and Andrew Clyde, R-Ga., all joined Democrats in voting against the bill. The fiscal hawks are opposed to aspects of the legislation's crackdown on Medicaid, which Republicans have said they are only trimming for waste, fraud, and abuse. But Medicaid work requirements for able-bodied people are not set to kick in until 2029, and conservatives have argued that it was a large window of time for those changes to be undone, among other concerns. They're also pushing for a more aggressive effort to repeal green energy tax subsidies passed in the former Biden administration's Inflation Reduction Act (IRA). That push has pitted them against Republican lawmakers whose districts have businesses that have benefited from the tax relief. Meanwhile House GOP leaders and the White House have held the bill up as the most significant fiscal reform in decades. Holdouts were expected to negotiate with GOP leaders in Congress and the White House through the weekend. "I really need to see something in writing. You know, we've talked enough. They know where we are. And you know, before, if it's just if it's the same old thing, that we can't get [a majority], we're going to have to pretty much stick with what we have, I've got a problem," Norman told Fox News Digital on Sunday morning He said he and other critics of the legislation were asked to meet with House GOP leaders at 1:30 p.m. on Sunday afternoon. Republicans are working to pass Trump's agenda via the budget reconciliation process, which allows the party controlling both Congress and the White House to pass vast pieces of legislation while completely sidelining the minority – in this case, Democrats. It does so by lowering the Senate's threshold for passage from 60 votes to 51, lining up with the House's own simple majority. The legislation must adhere to a specific set of rules, however, including only items related to federal spending, tax, and the national debt. Both the House and Senate are dealing with razor-thin margins. That extends to the House Budget Committee as well, where Republicans can only lose two of their own to still advance the legislation. Speaker Mike Johnson, R-La., was confident that Republicans could overcome their differences and stick to their timeline during an appearance on Fox News Sunday. "The plan is to move it to the Rules Committee by midweek, and to the House floor by the end of the week, as we meet our initial, our original Memorial Day deadline," Johnson said. Johnson said Republicans also "have got to compromise" on Medicaid work requirements, adding he was in contact with states "to make sure what the earliest possible date is." "This is the biggest spending reduction in three decades, maybe longer," Johnson said. Norman signaled that significant compromise was going to have to be made on leaders' parts. "Let's say they want it to kick in, in a year or six months. It ought to be now, but we'll look at that. We're not inflexible," he said. "But the main thing I want to relay, this isn't the end-all-catch-all-be-all. Nobody would disagree that the tax cuts are good policy, and nobody would disagree with President Trump's wanting to phase out Green New Deal scam credits. Anyone we want to do it on day one. So we're carrying out his policies." Meanwhile Office of Management and Budget (OMB) Director Russell Vought, a close ally of Roy's, took to X in support of the bill after it failed Friday. "Critics have attacked the House's One Big Beautiful reconciliation bill on fiscal grounds, but I think they are profoundly wrong. It is truly historic," Vought said. "The bill satisfies the very red-line test that House fiscal hawks laid out a few weeks ago that stated that the cost of any tax cut could be paid for with $2.5 trillion in assumed economic growth, but the rest had to be covered with savings from reform." Trump blasted the people holding up the legislation as grandstanders in a Truth Social post Friday. Those rebels and their allies, however, have argued that they are only pushing to fully enact Trump's agenda. "He campaigned on cutting the Green New Deal. But it's really a scam…. But this bill to postpone phase-out for seven years, it's just money we don't have," Norman said. Economic Policy Innovation Center founder Paul Winfree wrote on X Saturday, "Several of the Members of Congress negotiating on the OBBB this weekend are trying to make it even better. In fact, there is a significant group that has been fighting all along to make sure that [Trump] gets the biggest win possible." Moving ahead with Sunday night's vote is a sign of confidence by House GOP leaders, but it's not yet clear how it will play out. In addition to the Medicaid and IRA differences, Republicans must also reconcile current disagreements with blue state GOP lawmakers over State and Local tax (SALT) deduction caps. The legislation raised the current $10,000 cap to $30,000, but a handful of blue state Republicans rejected the compromise as insufficient. Meanwhile, conservatives in redder districts are demanding deeper pay cuts if the SALT deduction cap was raised. SALT Caucus member Rep. Nick LaLota, R-N.Y., suggested raising taxes on the highest earners to offset the cost – it would likely be an uphill battle to enact, though some conservatives have also signaled openness to the idea. "The One Big Beautiful Bill has stalled—and it needs wind in its sails. Allowing the top tax rate to expire—returning from 37% to 39.6% for individuals earning over $609,350 and married couples earning over $731,200—breathes $300 billion of new life into the effort," LaLota wrote on X Saturday. "It's a fiscally responsible move that reflects the priorities of the new Republican Party: protect working families, address the deficit, fix the unfair SALT cap, and safeguard programs like Medicaid and SNAP—without raising taxes on the middle class."
Zawya
17-05-2025
- Business
- Zawya
African Development Bank approves $304mln loan to support Botswana's fiscal stability and economic reforms
GABORONE, Botswana -- The African Development Bank ( has approved a $304 million loan to Botswana to support the southern African country in managing mounting fiscal challenges and implementing key governance and economic reforms. The funding, approved by the Bank Group's Board of Directors on Wednesday, will finance the Governance and Economic Resilience Support Programme (GERSP), a one-year general budget support operation covering the 2025/2026 fiscal year. The facility aims to cushion Botswana from the financial shock triggered by declining diamond revenues, while advancing critical reforms to enhance fiscal transparency, boost revenue collection, and promote private sector-led growth. Botswana's economy contracted by 1.7% in 2024, primarily due to weak global demand for diamonds, which account for approximately 80% of the country's exports. The country's fiscal deficit widened -- from a balanced budget in 2022/23 to 4.7% of GDP in the 2023/24 financial year–– and is projected to reach 6.7% in the current fiscal year. 'This operation comes at a critical time for Botswana," said Moono Mupotola, Deputy Director General for Southern Africa and Country Manager at the African Development Bank Group. "We will work with the new administration to implement reforms that will deepen fiscal sustainability, strengthen transparency, and create a more business-friendly environment for economic diversification." The GERSP is structured around two main pillars: Strengthening fiscal sustainability and transparency, and stimulating economic growth. It includes measures to increase domestic revenue mobilization, curb illicit financial flows, and enhance public expenditure efficiency and accountability. The program also targets support for micro, small, and medium enterprises, particularly those led by women and youth, to create jobs and reduce inequality. The operation is a transitional measure to address short-term budget pressures while engaging with Botswana's new government, elected in November 2024, on long-term development goals. 'The African Development Bank is committed to supporting Botswana's ambitious socioeconomic development agenda through credible and transformational reforms, project and program financing, and continuous policy dialogue', said Abdoulaye Coulibaly, the Bank's Director of Governance and Economic Reforms. The new loan builds on the Bank's prior support to Botswana, including the Economic Recovery Support Programme implemented in 2021-2022, which had $200 million cofinancing from the OPEC Fund for International Development. The current program aligns with the Bank's Country Strategy Paper for Botswana (2022-2026), which prioritizes building economic resilience through support for economic governance and private sector development. Distributed by APO Group on behalf of African Development Bank Group (AfDB). Contact: Emeka Anuforo Communication and External Relations Department media@ SOURCE African Development Bank Group (AfDB)
