Budgeting (Little Upsilon)

I'm starting to amass a decent debt. I notice the auto budget is spending over double is required. I've manually set a budget but some areas I've decided to underfund some sectors, is there a significant consequence for underfunding sectors?

For example I've funded government to 0 because I can't find anywhere where its says how much government needs to operate, or any idea what this money is used on.

I've underfunded military to around 1/3 less then it requires, will things like tank treads break or mass layoffs occur, or will the WWII soviet union scenario occur where 2 soldiers need to share a rifle?

Other sectors are marginally underfunded (about 4% underfunded)

Budgets don't matter. They do nothing.

1) Stop buying weapons.
2) Deactivate current weapons.
3) Focus on your economy.

Or buy more defensive weapons and get to level 2 lol. That's assuming you need more weapons of course. :P

Nah was level 4 or 5 I can't remember, my debt has came from automatic ammo purchases that I have no knowledge of stopping. Its been buying 1T of ammo each year, even though I have nearly 100% of ammo consumption in contracts, my country makes about 600B per game year but I have no idea why debt has been increasing.

Spose I'll deactivate my military for a while.

Ammo started putting me into debt as well. I had ammo consumption for missile interceptors, anti aircraft missiles, etc... that was 1.7T. I deactivated my entire army and the consumption went down big time.

I can't believe that the budgets don't matter. If they don't why is it an option? Why not budget everything at zero then?