Liabilities are not necessarily deficits. They are like futures contracts to take delivery today, but pay tomorrow. That doesn't mean the entity is spending more than their income per se. If I earn and keep a $5 bill in my wallet and borrow $3 from you in singles because the shopkeep doesn't have change for something that costs $3, I'm not deficit spending. My income is $5, I've only spent $3, and I'm up $2 dollars in unspent income. You have $3 "saved" with me and my liability to you is $3.
In any event, your "night watchmen" like comments about the role of government are disturbing. This is a Democratic website in case you didn't know. Most of us believe government exists to serve public purpose, not merely "law and order" in a generic sense. Even the worst and most disgusting neoliberal members of our party admit as much.
Government is a driver of investment spending, both in terms of what investments are made and by how much.