The key objective of this paper is to empirically ascertain whether fiscal deficit enhance or retard economic growth in the Gambia between the period 1980 and 2009. The empirical results obtained from the estimation exercise are fairly robust and satisfactory, in that the variables conformed largely to a priori expectation in terms of statistical significance. The empirical results show that fiscal deficit affects the real economic growth positively and significantly with a lag of one year. The sign of the parameter estimate conforms to the presumptive expectation, given that the fiscal deficit in the Gambia was essentially used in financing economic and social infrastructure during the study period. Thus the results support the Keynesian assertion that fiscal deficits have positive impacts on economic growth.