Economic theory remains ambivalent on the macroeconomic effects of fiscal policy; Theoretical models on the effects of fiscal policy can be often distinguished by two main views – the Classical school and the Keynesian school, and the Mainstream economics includes a wide range of views, thus this thesis aims to define all this views even theoretically or empirically, to assess the role of the fiscal policy and its macroeconomic effects in Egypt according to the actual role it played compared to the potential one it could play according to the conclusion of the literature review . Thus, this thesis comprises of three chapters that include three main parts; theoretical review (provided in chapter one), descriptive analysis (provided in chapter two) and an econometric assessment (provided in chapter three), and the concluding remarks and suggested policy implications.