The aim of this paper is to investigate the causal effect of government spending on real output conditional on economic freedom. To accomplish this task, we use data from 2000 to 2019 for 161 countries and an interaction model. Findings show that countries with the mean level of economic freedom had a fiscal multiplier of around 1.0, when economic freedom is at the highest level of the sample the multiplier is around 0.6. Results show the inverse relationship between the fiscal multiplier and the level of economic freedom, that is, the higher the level of economic freedom, the lower the multiplier.