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Zakat as a Fiscal Policy Tool in the Perspective of Islamic Economics

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Zakat has the potential to improve economic justice and support sustainable development in Muslim-majority societies.
Effective institutionalization of zakat can enhance conventional fiscal tools by directly funding public welfare programs.
The analysis identifies challenges like limited transparency and fragmented governance in managing zakat.
Countries such as Malaysia and Indonesia are integrating zakat into national fiscal strategies, showcasing its relevance yet facing hurdles.

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Systematic analysis evaluates zakat's potential to enhance economic equity and welfare in Muslim nations.

Judijanto et al. (2025) studied this question.

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