The study investigates the effects of the global (and the US) Economic Policy Uncertainty and its volatility on the cyclical properties of the fiscal policy by controlling the institutional quality. Our analysis conducted various econometric techniques for dynamic panel data that provide three significant contributions. First, a higher level and volatility of the global economic policy uncertainty induce a pro-cyclical fiscal policy. Second, an improvement of institutional quality reduces the effects of global economic policy uncertainty on fiscal cyclicality. Third, the effects of institutions are heteroscedastic across the six classical six institutional indicators.