Another ***SPOILER***
In NationStates, one area where one can afford to make budget cut-backs is National Defense.
This is because the model does not include any military system. So one's military strength is irrelevant.
When offered the choice to shrink one's defense budget, the strategic player will do so, and either dedicate those funds to other programs or lower taxes.
Some regions make a game out of role-playing military actions. They can get very involved! For instance, calculating an exact figure for one's military budget based on defense spending, the strength of one's economy, population and tax rate, then purchasing weapons systems and units using common criteria, then comparing arms depots.
Consequences can include loss of imaginary dollars, banning from a region or even turning over one's password and ceding the nation itself to one's rival.
But we don't play that way in Civfanatica. It's just a fun place to hang out.