This study examines the effects of global uncertainty and its associations with each country’s external debt and shadow economy on the government expenditures for a sample of 69 low and middle-income economies. Firstly, a higher external debt and a higher shadow economy reduce the ratio of government consumption to output. Secondly, an increase in the Global Economic Policy Uncertainty decreases government expenditures suggesting a negative effect of uncertainty on public spending in low and middle-income economies. Thirdly, the effect of the global EPU on public spending is weaker in countries with high external debt or shadow economy.