Government (by which I actually mean The State) is "real" in the same way astrology is "real".
They both exist as a collection of related beliefs. No one can doubt that the beliefs exist and this belief has effects. People truly believe in them and will argue about their "reality". They can point to the horoscopes in the newspaper or online, to the jewelry created in the form of the various astrological signs, to the "laws", and monuments, and giant buildings full of people. But those are just indications that people believe in these things and act on their belief, not that there's any concrete reality beneath the beliefs.
People actually alter their behavior based on their beliefs in these things. People choose who to date based on astrology and choose people to kidnap, rob, and murder based on government. But the beliefs are equally stupid.
In the end, you have nothing but beliefs and people willing to do things based on that belief, but nothing real holding up those beliefs.
Aren't you glad you aren't superstitious like those people?
That being said, sometimes it is necessary, when you are speaking to the believers, to refer to the thing as if it's real in order to point out the flaws in that system of belief. This way you can show that it doesn't actually work as advertised-- although they probably won't listen.