Public expenditure in an Islamic state

Abstract

This paper discusses the principle of public expenditure in an Islamic state. A perspective is set stating the economic goals of the state in Islam: need fulfilment, wealth income reduction of Employment, stability and inequality and development. scientific progress are the subsidiary goals to be pursued to ensure fuller realisation of the main goals. This discussion is followed by a statement of the functions of the Islamic state which involves three categories under which the main heads of public expenditure are studied: Permanent heads of expenditure mandated by Shariah which includes defence, law and order, da'wah, need fulfilment and Expenditure necessary under present (1) the like; (2) circumstances which includes protection of environment, capital formation and expenditures necessary for stabilization purposes and, lastly, (3) Expenditures required to organize additional activities assigned to state by the people.