This paper makes a new attempt to examine effects of anticipated fiscal shock on both the long-run and the transitional economic growth. The modeling strategy is that government consumption expenditure provides utility to the household via the total stock of government service rather than government purchasing activity itself Using such a framework, we find that the government consumption expenditure is totally incapable of influencing the steady-state economic growth rate, but an increase in government consumption expenditure will influence the short-run growth rate. The key factor determining the transitional behavior is the intertemporal elasticity of substitution.