The present paper offers a fundamental critique of the macroeconomic effects of fiscal policy after it surveys the theoretical and empirical literature on the macroeconomic effects of fiscal policy. It emphasizes the importance of the fiscal policy after reviewing the revolution of almost all economic schools . This paper links the developmental role of the fiscal policy with the objectives and measures of the economic transformation. Thus, the importance of this study can be seen from several perspectives: First, it reviews the theoretical harvest of fiscal policy and provides a comparison between the main revolutionary Economic thoughts; the classical school, Keynesian school, and monetarist school. Then it turns to conclude the fiscal policy from the new consensus mainstream economic schools. Third , the study present the macroeconomic effects of fiscal policy in developed vs developing countries according to empirical pieces of evidence provided by empirical studies applying VAR approach, finally the paper concludes the macroeconomic effects of fiscal policy according to theoretical consensus and Empirical evidence in a nutshell. Thus, the study is important for the policymakers as well as scholars as it gives its recommendations upon the last analysis in the form of “policy implications”.