The accounts you showed are not in dispute, nor that governments have receipts and outlays[1]. Your point about scoping is an important one. The discussion is about the whole circuit - from money creation to destruction. For that, you need an accounting model that covers all the entities in the circuit, including notably the money source, the bank (there's only one in the government circuit, conveniently owned by the government).
When you have the whole model, you'll see that money creation (triggered by spending) has to preceed destruction (from taxation for the most part), otherwise nothing can flow.
A critical point to take from this is to note that all the entities in the circuit need to be in balance (for the double entries to be correct). That means that for the private sector to have net savings and the foreign sector to be in surplus (i.e. a historic current account deficit), the government sector (which includes the central bank) must be in deficit.
This is super important! It means that deficits are not just not a problem, but that they are a necessary part of the system. It also shows that governments are not financially constrained (there's no limit on how big the numbers can be), so taxation is not needed for getting the money to pay for things. [2]
Steve keen has a blog post that goes through much of the accounts behind this:
[1] receipts and outlays is interesting terminology vs income and expenditure - perhaps noting that the government is not a business?
[2] however, governments very much _are_ resource constrained, so they must use their infinite buying power very wisely, otherwise inflation ensues. This shows one of the main purposes of taxation, which is to induce the private sector to provide real resources that the government can purchase.
The central bank (Federal Reserve) is intentionally decoupled from our government. (Yes, it is subject to certain political pressures but the institutional independence remains.) I’d recommend reading biographies of Alexander Hamilton to learn more.
I’m not going down the MMT rabbit hole with you; it is a waste of time.
Edit having read your edit: that paper doesn't have the rest of the circuit so can't explain the source of the money.