The Department of Government Efficiency, DOGE, as it is popularly known, is an initiative taken by the Trump government soon after he was voted to power. The department, created by a presidential order, is headed by Elon Musk, the richest man globally. Not surprisingly, it created ripples across the globe. The main objective of the department is to ensure that taxpayers’ money is judiciously spent and not wasted on frivolous expenditure. The move was prompted by Trump’s decision to cut down the $1.8 trillion deficit (annual year ended September 2024).
There have been heated discussions questioning the legality of the department, which has not received Congress’ sanction. Besides, questions were raised about Elon Musk, who is not an elected representative but is still part of the government. It is too early to know how much expense has been reduced by DOGE to date and whether this has actually translated into government savings. What is important is that citizens at large have given a thumbs-up and are pleased that the dollars received through taxes are well spent.
Going by the regular updates on X (formerly Twitter) and media reports, DOGE has definitely done some good work. It has cracked down on credit cards, with as many as 2.8 million cards deactivated in five weeks. They were either unused or unneeded. Besides, dummy accounts in the case of direct loans were also weeded out by pausing direct loans to people under 18 and those over 120 years! “Basic sanity checks like these were necessary to minimise fraud.” Apart from these, initiatives such as cutting wasteful contracts and grants, and shutting down a few departments now deemed redundant, have created a growing awareness that wasteful expenditure needs to be reduced.
India, which has never hesitated to adopt good initiatives, should seriously consider setting up a department along the lines of a deshi DOGE. After all, the government has budgeted over R50 lakh crore for 2025–26. While it may sound like a cliché that ‘money saved is money earned’, the Indian government could certainly benefit from trimming expenses across its 102 departments at the Centre. The states can also take a cue from the Centre and have their own state DOGE. While India does not have a huge deficit like the USA, even a partial reduction in expenses would be a step in the right direction. Even a one per cent rationalisation of expenses, amounting to R50,000 crore annually, would translate into a five per cent saving over a full term.
The division should be headed by a non-politician, and should be without government bureaucrats who, over the years, may have formed soft corners for particular ministers in the committee. Preferably, it should be led by someone from the private sector. A five-member committee comprising individuals with impeccable credentials should be formed. The composition of this independent ministry could be drawn from a panel of retired private-sector or SBI bankers, institutional builders, lawyers, and even industrialists. For one, the ministry, answerable to no one but the prime minister, would necessarily have to have an understanding of financials as well as how the government functions. This could help cut down the burgeoning interest, which accounts for nearly 25 per cent of total budgeted expenses, and even devise ways to secure a better borrowing mix at finer rates. Unlike the USA, the government can legally set up a deshi Doge, independent of any ministries, with the specific purpose of bringing transparency to the government’s functioning. The states can also follow in the footsteps of the Centre.
Reviewing the 300-page expenditure budget will be a mammoth task, and monitoring the plethora of schemes will not be easy. Besides the numerous departments to monitor, there are different schemes under each department, many of which were started by different politicians at different times. Consolidating schemes under an independent Doge committee would also be a major challenge.
Across divisions, India has taken soft loans from global institutions and various countries for specific projects. These projects are to be executed in a time-bound manner, yet delays often lead to cost overruns, which translate into higher interest payments. While a separate government body currently monitors mega projects, the deshi Doge team could independently monitor cost overruns and suggest mid-course corrective actions. Waterways, roadways, the power sector, smaller airports, and ports are some areas that require close monitoring. DOGE could also provide recommendations for streamlining construction projects and eliminate antiquated bidding systems such as item-wise project costing on a cost-plus basis, instead opting for performance-oriented bidding on all projects.