Yes, and the system of accounts can be pretty complex. In general though every government will have a “petty cash” account as a minimum.
Governments pay for lots of things, and these transactions pass through the banking system. For example the UK government uses Barclays for quite a lot of its transactions.
Check out [this comment chain](https://www.reddit.com/r/UKPersonalFinance/comments/k30iwt/comment/ge10wp7/?utm_source=share&utm_medium=web2x&context=3) for more detail than you could ever want.
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