"Islamic Finance Researches" (IFR)

Presenting the Proposed Model of Financing the Islamic Government and Examining Its Executive Capacity in Iran's Economy

Document Type : Science - Research (Islamic Financial Theory)

Authors

1 Professor, Faculty of Islamic Studies and Economics, Imam Sadiq University, Tehran, Iran

2 Ph.D. Student of Economics, University of Tehran, Tehran, Iran

Abstract

One of the problems of financing the Iranian state is its dependence on oil revenues. This requires reforming the tax system and budgeting structure in the country. One of the least considered issues in this regard is paying attention to the mechanisms involved in Islamic economics. A survey of revenue resources and their expenditure indicates that in sharia a general structure has been dedicated to money allocation. This article addresses the issue of how to finance the Islamic government with due consideration of the prescribed tax mechanism. To do this, first, the model of state financing in the Islamic economic system is mentioned, and based on it, the recommended model is extracted in the presence of several fiqh authorities, and it is maintained that there should be a continuous cooperation and coordination between fiqh authorities and the Islamic government. According to this structure, the fiqh authorities should offer the funds collected by their offices throughout the country to the Islamic government. Decisions on khums and general endowments are made in the "Sharia Fund Coordination Council" consisting of representatives of fiqh authorities and the Islamic Government. The main task of this council is to decide on resources in line with common goals and to ensure transparency and prevention of parallel allocations of funds. Also, the executive capacity of the model has been examined and based on the calculations made, it has become clear that by designing an integrated mechanism including the religious payments such as khums, zakat and endowments , it can help the government to cover 90 percent of its budget apart from oil revenue. This can facilitate the implementation of divine commandments in society and motivate people to abide by their religious duties.

Keywords

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Volume 10, Issue 2 - Serial Number 20
May 2021
Pages 495-538
  • Receive Date: 20 January 2021
  • Revise Date: 13 September 2021
  • Accept Date: 15 September 2021