Cash flow is a term that can be used by everybody in everyday financial situations.
It simply means that if you (that includes single people, married people, small, medium, and large businesses, corporations, city, county, state and Federal governments must ensure that total monthly expenses (or also called in finance terms, DEBT) does not exceed total income; if it does you have a negative cash flow!
When your debt exceeds income you (you include all of the above entitles) YOU have choices to make, i.e., increase income or as many do that exceed $10,000 in debt declare bankruptcy or go to a firm that specializes in reducing debt. Sounds great but the down side is this: If companies do that (forgive debt) they must raise their prices for merchandise or go bankrupt and that is the irony of everyone paying for your bad decision.
Now cities and counties have additional choices! They have to limit taxes to the total cost of their government as some have done OR raise taxes on various programs, i.e., Real Estate (home), various other costs that are not required to be voted by the public. Those items are generally only voted on via council members. (Remember you vote them in or as I always say, (THEY WORK FOR ME, THE TAXPAYER and they can be voted out by registered voters)!
Now state governments have other choices if they exceed expected revenue! They can increase tax burdens and other costs such; license tags and driver license, other service fees, real estate tax, the amount is endless. This happens through the House (the money guys), not the Senate (the policy guys); which has happened in the past in many states which; you can blame the state legislators.The federal government is another issue because, in recent history, leaders have ignored fiscal responsibility and put this country into a position that will take years and years to maybe be able to climb out of this disastrous hole we have been placed in. Our government has tried to counter this massive debt by printing more money (which is a disaster BECAUSE it lowers the value of your own money as more money is in circulation, the value of your investments, and the exchange rate between countries. Remember that so many products are now produced overseas that taking those steps of printing additional currency WILL increase the cost of those goods. Additionally, our Federal Government can place additional effort to collect owed taxes from individuals no matter what political party is in power. If this goes forward it will be the death of the middle class and make our low income citizens poorer. You need to study history (Argentina) or ask some one who has lived in a socialist or communistic country.