Fiscal Policy is on debate nowadays in the Brazilian economic policy. Its impacts on GDP growth, inflation, interest rates and real exchange rate have been made clear and researched by several authors, especially in emerging economies. This book aims to extend the fiscal policy shocks via government spending through a DSGE model into subnational levels for the Brazilian economy. First, SVARs models for the Brazilian economy presented new parameters for all the three levels of the DSGE model proposed. Then, these new parameters applied to the DSGE presented new results, showing that, although there is a temporary increase on GDP level, an expansionary fiscal policy via government spending leads to higher inflation, higher interest rates, appreciated real exchange rate and starts a recession, like the 2015-17 economic environment of the Brazilian economy.