Some Thoughts on Public Finance Islam

Islamic banking finance economy

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Some Thoughts on Public Finance Islam

 

Viewed from the angle of economic analysis, policy unite the muhajirin with the Ansar turns giving enormous economic impact, making the country prosperous Medina later. Fiscal policy plays an important role in the economic system of Islam than monetary policy. The prohibition on usury and the obligation of zakat implies expenditure of the importance of fiscal policy position compared with its monetary policy. Given the current state of Islam which is the Prophet did not inherit pendirinan as appropriate within a country, the fiscal policy plays an important role in building the Islamic state.Islamic Public FinanceIn Islamic finance, financial policy that there should be tailored to the objectives to be achieved by an Islamic government. There is a fundamental difference from the goal of economic activity in conventional economics to Islamic economics. Conventional economic goals are more material and do not consider the aspects of 'immaterial'. All analysis is intended to measure the results of these activities from the standpoint of any mundane. While Islamic economics has a very comprehensive objectives concerning both material and spiritual aspects of life in this world and the hereafter.The first Islamic country that was built in the world is a country that built the Prophet in Medina that we are familiar with the name of the Islamic State of Madinah. The country is built on the spirit of Islam that is reflected from the Koran and the Prophet's leadership. The main capital used to build this country is not the money but the spirit of monotheism embedded Rusulullah to the people of Medina. At that time the muhajirin fled from Mecca and came to Medina without bringing enough stock. While in Medina there is no well-organized government.Some policies have been taken out by the Prophet to confirm the existing government. In the economic field, in order to spur the growth of existing economic activities, the policy measures taken by the Prophet is:1. Build the mosque as an Islamic center that is used in addition to pray also for activities other activities such as a parliament meeting, the secretariat, the Supreme Court, the army headquarters, the office of foreign affairs, education center, a training ground for the broad spreader religion, dormitories, baitul maal, where the council and delegates.2. In order to spur economic activity, the Prophet unite among mujahirin with the Ansar. Ansar group gave a portion of their property to the muhajirin to be used in production activities until the muhajirin can have a life.The terms of the Islamic economic analysis, policy unite the muhajirin with the Ansar turns giving enormous economic impact. Brotherhood it turned out to have made the State Medina as a prosperous country in the future.In the early days of the Government of the Islamic State, Islamic public finance and fiscal policy has not much role in the fiscal perekonomian..Kebijakan not run as is done in the analysis of fiscal policy today, because there is no state income at that time. Prophet Muhammad and his staff did not receive salaries as the case of a government. Government revenue only comes from public donations. Zakat is not required at the beginning of the Islamic government. If the Prophet in need of funds to help the poor, the ordinary Bilal borrowed from the Jews.Other sources of income in the early years of the administration is a treasure acquired from the spoils of war, and this is only allowed to be one of the financial sources of the government after the fall of surah al-Anfal (Sura 8:41) in the second year Hijri. Furthermore, in the second year of the Hijri tithes is an obligation that must be paid by every Muslim and then became one of the government's financial resources.Other financial resources coming from jizyah is a tax paid by non-Muslim groups, particularly the scribes, who obtained the guarantee of protection of life under Islamic rule. Other sources are kharaj (land tax levied on non-Muslims), ushr (import duties) imposed on any trader and paid only once a year and is only valid if the value of the trade exceeds 200 dirhams.With the passage of time and begin accumulating financial resources, government began to finance various expenses mainly used to maintain the existence of the state. For example to finance defense spending, the country's debt payments, assistance for the traveler, salary payments to carers, teachers and other state officials.Only after that, down paragraph concerning expenditure requirements zakat funds to eight groups, as stated in Surah at-Tawbah letter of verse 60. In this verse the decline in fiscal policy seem to firmly establish the types of expenditures that can be used on existing charity funds , Use of charity funds beyond the provisions laid down by that paragraph is not in accordance with the provisions of the Koran. There seems obvious how Islamic economics is very concerned about the poor, the degree of life need to be helped and raised to a decent level.Observed side of public finances, the collection and expenditure of zakat can be regarded as an activity for a more equitable income distribution. Islam does not want any treasure that dwell in one's hand. If the property has been sufficiently nisabnya, it shall be issued zakat. Thus here appears the effort to encourage people to play the treasure into the economic system, so that it can generate growth.With the development of Islam as reflected by the increasing extent of territory of Islamic rule, the role of public financial activities is increasingly important. Amil zakat collection through institutions collecting zakat funds is the model that existed at that time. Baitul Maal an institution 'financial departments' Islamic government.In addition to these institutions, the Islamic government there are also other institutions instrumental in improving public welfare institution that is related to the endowments. In the history of Islam, it was noted that the charitable organization is so large role in the economic system.Fiscal policy IslamiUnlike conventional fiscal policy, in which a government can affect economic activity through various incentives in the tax rate or the amount of a tax. base 'of an economic activity, then the zakat system, all the provisions of the magnitude of' tariff 'zakat has been determined based on the instructions of the Prophet. Therefore, charity is very different policies with tax policy.Zakat is the main component in the system of public finances once the main fiscal policy in the economic system of Islam. Zakat is an activity that is mandatory for all Muslims. Nevertheless, there are still other components, which are voluntary, which can be used as another element in the source of state revenue. These components linked voluntarily associated with a person's level of devotion.The financial resources of the government outside of zakat can be determined the extent not inconsistent with the provisions of the existing Islamic. Sources of new financial resources can be formed after the process of jurisprudence. For example, whether to remove poverty, governance allowed to levy taxes beyond charity? This question is one of debate among jurists that are characteristic of how a fiscal policy can be executed in the Islamic system of government.While the types of new taxes in the public finances in the conventional economic system studied based on different principles. One of the principles used in the public end of the financial systems of conventional economics is the principle of fairness. In the public finance, said fairness issues as the problem of 'ethics' are full of value judgments. To that end, they define some principles that should be considered in the value judgment that benefit principle and ability to pay principle. Admittedly, the analysis system in public finances is not as advanced as the Islamic system of analysis in conventional public finance. Still need to work hard in order to develop ideas related to public finances Islamic.