The impact of government spending and tax cuts on the economy depends on whether it's in a downturn or expansion phase. In a recession, increasing government spending is more effective, while in an economic boom, tax cuts work better. This study looked at how fiscal policy affects economic growth in Tunisia, an emerging economy. It found that during a downturn, increasing government spending helps boost the economy, while in an expansion, tax cuts are more beneficial. Additionally, raising interest rates too quickly during a recession can harm economic growth.