Public Finance in Islam

INSTRUMENTS OF PUBLIC FINANCE IN

ISLAM

INSTRUMENTS OF PUBLIC FINANCE IN

ISLAM

GROUP MEMBERSGROUP MEMBERS

M Shahzad Khan

Shabir Ahmed

M Shahzad Khan

Shabir Ahmed

Lay OutLay Out

Introduction Public finance Zakaat and Economic Zakaat and public finance Nisab Public recipents of zakat Efficient allocation of zakaat Benefit of zakaat Charity or sadaqah

Introduction Public finance Zakaat and Economic Zakaat and public finance Nisab Public recipents of zakat Efficient allocation of zakaat Benefit of zakaat Charity or sadaqah

Public Finance.Public Finance.

Public Finance.The revenue collection and spending

activities of the government

1. Public sector.2. Private sector.Need of Public sector. Welfare Infrastructure Defence Regulatory authorities.

Public Finance.The revenue collection and spending

activities of the government

1. Public sector.2. Private sector.Need of Public sector. Welfare Infrastructure Defence Regulatory authorities.

Economical prospectiveEconomical prospective

Economically, Zakaat is the best check against hoarding. Those who do not invest their wealth but prefer to save or hoard it would see their wealth dwindling year after year at the rate of the payable Zakaat. This helps increase production and stimulates supply because it is a redistribution of income that enhances the demand by putting more real purchasing power in the hands of poor.

Economically, Zakaat is the best check against hoarding. Those who do not invest their wealth but prefer to save or hoard it would see their wealth dwindling year after year at the rate of the payable Zakaat. This helps increase production and stimulates supply because it is a redistribution of income that enhances the demand by putting more real purchasing power in the hands of poor.

Zakaat and Public Finance

Zakaat and Public Finance

Zakaat is the collection and spending habits of the government from Sahib-e-Hasiat.

Aiming to bring about equality in the society and the social up lift of the general public.

A continuous reminder of what ever you earn is from Allah and must be spent according to his will.

Zakaat is the collection and spending habits of the government from Sahib-e-Hasiat.

Aiming to bring about equality in the society and the social up lift of the general public.

A continuous reminder of what ever you earn is from Allah and must be spent according to his will.

NisaabNisaab

Nisaab is the amount of cash, stock or bonds, other cash assets which is to be paid to the government no excess.

Nisaab of cash, stock or bonds, other cash assets is the equivalent amount of Gold or Silver.

Nisaab is calculated by adding up the cash value of all the assets such as gold, silver, currency etc. and if it is equal to or in excess of the minimum Nisaab then it is payable.

Zakaat is due at the rate of 2.5% .

Nisaab is the amount of cash, stock or bonds, other cash assets which is to be paid to the government no excess.

Nisaab of cash, stock or bonds, other cash assets is the equivalent amount of Gold or Silver.

Nisaab is calculated by adding up the cash value of all the assets such as gold, silver, currency etc. and if it is equal to or in excess of the minimum Nisaab then it is payable.

Zakaat is due at the rate of 2.5% .

Public Recipients Of Zakaat

Public Recipients Of Zakaat

FUQARA:

MASAKEEN:

AL-AMILEEN:

MU-ALLAFATUL-QULUB:

AR-RIQAAB:

AL-GHAARIMEEN:

FI-SABILILLAH:

IBN-US-SABEEL:

FUQARA:

MASAKEEN:

AL-AMILEEN:

MU-ALLAFATUL-QULUB:

AR-RIQAAB:

AL-GHAARIMEEN:

FI-SABILILLAH:

IBN-US-SABEEL:

EFFICIENT ALLOCATIONEFFICIENT ALLOCATION

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Benefits of zakaatBenefits of zakaat

It reminds Muslims of the fact that whatever wealth they may possess is due to the blessings of Allah and as such it is to be spent according to the His commands.

Zakaat functions as a social security for all. Those who have enough money today pay for what they have. If they need money tomorrow they will get what is necessary to help them live decently.

Zakaat payer pays his dues to Allah as an act of worship, a token of submission and an acknowledgment of gratitude. The receiver of Zakaat receives it as a grant from Allah out of His bounty, a favor for which he is thankful to Allah.

It reminds Muslims of the fact that whatever wealth they may possess is due to the blessings of Allah and as such it is to be spent according to the His commands.

Zakaat functions as a social security for all. Those who have enough money today pay for what they have. If they need money tomorrow they will get what is necessary to help them live decently.

Zakaat payer pays his dues to Allah as an act of worship, a token of submission and an acknowledgment of gratitude. The receiver of Zakaat receives it as a grant from Allah out of His bounty, a favor for which he is thankful to Allah.

Charity Charity

“Giving to the poor is lending to God” The Word charity has a noble and religious touch. All religions preach charity and exhort their followers

to practices it in spirit and words. All voluntary acts of alms giving ,helping the poor and

needy ,relieving the people in distress are gestures of charity.

Infact Islamic charity is one of the important features of Islamic economic system that is based on equity and equality. Honest earnings and correct spending.

Act of charity can be divided under two heads.1. Charity of wealth 2. Charity of deeds

“Giving to the poor is lending to God” The Word charity has a noble and religious touch. All religions preach charity and exhort their followers

to practices it in spirit and words. All voluntary acts of alms giving ,helping the poor and

needy ,relieving the people in distress are gestures of charity.

Infact Islamic charity is one of the important features of Islamic economic system that is based on equity and equality. Honest earnings and correct spending.

Act of charity can be divided under two heads.1. Charity of wealth 2. Charity of deeds

Both the act of charity and doing good are the basic economic and moral principals of Islam. Charity demands that money should not be concentrated in a few hands as we see in Pakistan ,neither it is to be amassed.

All , the parents and relatives ,neighbors and the poor and the needy have shares in true believer's earnings.

All acts of kindness, benevolence, forgiveness and peace making are part of Islamic Charity.

Even removing a stone from the path ,feeding the poor, helping the people in distress, kindness to women and orphans, smiling and saluting others are acts of charity.

The resulting social and economic evils are before our eyes.

Both the act of charity and doing good are the basic economic and moral principals of Islam. Charity demands that money should not be concentrated in a few hands as we see in Pakistan ,neither it is to be amassed.

All , the parents and relatives ,neighbors and the poor and the needy have shares in true believer's earnings.

All acts of kindness, benevolence, forgiveness and peace making are part of Islamic Charity.

Even removing a stone from the path ,feeding the poor, helping the people in distress, kindness to women and orphans, smiling and saluting others are acts of charity.

The resulting social and economic evils are before our eyes.

InstitutionsInstitutions

Bait-ul –mall Department of Oqafah

The special amount of charity on both Eids. Fatirna (Eidul fatir) Meat of Sacrificed Animals (Eidul azha)

Purchasing power increases Economic growth Decrease in unemployment

Bait-ul –mall Department of Oqafah

The special amount of charity on both Eids. Fatirna (Eidul fatir) Meat of Sacrificed Animals (Eidul azha)

Purchasing power increases Economic growth Decrease in unemployment

Questions and AnswersQuestions and Answers