Elon Musk and his Department of Government Efficiency (Doge) will soon turn their attention to the Pentagon's vast budget as President Donald Trump's administration looks to cut federal spending, Defence Secretary Pete Hegseth said on Tuesday.
The Pentagon is by far the largest defence department in the world, with a budget of $895 billion for the coming fiscal year, more than the next nine countries combined. It enjoys bipartisan support and conservative politicians claim that, even with its hefty price tag, it remains underfunded.
“The US needs to spend more than the Biden administration was willing to, who historically underinvested in the capabilities of our military,” Mr Hegseth said, even as he acknowledged concerns that America's $36.5 trillion debt is “a national security liability".
The Pentagon's near $1 trillion annual budget might seem like a ripe place to start looking for government waste, especially considering the department has never fully passed an audit since these were implemented in 2018, meaning not all funds can be accounted for.
Mr Musk, the world's richest man, has spent the weeks since Mr Trump's inauguration gutting federal agencies including the US Agency for International Development and the Consumer Financial Protection Bureau, which was set up in the wake of the 2008 financial crisis.
“I hope to welcome Elon to the Pentagon very soon, and his team working in collaboration with us,” Mr Hegseth told reporters while on a visit to Germany, calling the billionaire “a great patriot interested in advancing the American first agenda".
Mr Musk appeared alongside Mr Trump later on Tuesday to talk about how his Doge office is uncovering fraud, abuse and waste at federal agencies.
Mr Musk also has billions of dollars in Pentagon contracts, primarily for his SpaceX and Starlink enterprises. When asked if he would be policing himself, he said everything Doge does will be transparent.
"So if you see anything, you say, like, wait a second, hey, Elon, that doesn't that seems like maybe that's, you know, there's a conflict there. I don't think people are gonna be shy about saying that," Mr Musk said.
Mr Hegseth suggested that any cuts would focus on areas considered unnecessary for war fighting.
“There is waste – redundancies and head counts in headquarters that need to be addressed,” he said. “There's just no doubt, look at a lot of the climate programmes that have been pursued at the Defence Department. [It] is not in the business of climate change, solving the global thermostat. We're in the business of deterring and winning wars, so things like that we want to look for to find efficiencies, and many others.”
He also suggested weapons systems procurement could be streamlined to save money.
But, he stressed, “the Defence Department is not USAID".
“USAID has got a lot of problems that I talked about with the troops pursuing globalist agendas that don't have a connection to 'America First'. That's not the Defence Department,” Mr Hegseth said.
“But we're also not perfect either. So where we can find billions of dollars … every dollar we save, there is $1 that goes to war fighters, and that's good for the American people.”
At the weekend, Mr Trump's National Security Adviser Mike Waltz suggested that the Pentagon's shipbuilding processes could be an area of particular interest for Doge.
Mr Hegseth is travelling to Brussels for a Nato meeting this week, as well as a gathering of the Ukraine Defence Contact Group.
“We’re going to have straight talk with our friends,” he said of the upcoming sessions. Mr Trump has called for Nato allies to spend 5 per cent of their gross domestic products on defence. Twenty-three allies meet or exceed Nato's current 2 per cent target.
There are no immediate plans to withdraw US troops from their positions around the world, Mr Hegseth said after meeting top brass at US Africa Command and US European Command in Stuttgart.
“It would be the wrong planning assumption to say America’s abandoning something, or America’s leaving,” Mr Hegseth said. “No. America’s smart to observe, plan, prioritise and project power where we need to deter conflict.”
More on Quran memorisation:
The specs
Engine: 5.2-litre twin-turbo V12
Transmission: eight-speed automatic
Power: 715bhp
Torque: 900Nm
Price: Dh1,289,376
On sale: now
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Company%20profile
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Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Emergency phone numbers in the UAE
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
More from Neighbourhood Watch
Suggested picnic spots
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Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes
Springtime in a Broken Mirror,
Mario Benedetti, Penguin Modern Classics
Tank warfare
Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.
“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”
The Library: A Catalogue of Wonders
Stuart Kells, Counterpoint Press
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Company%C2%A0profile
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