FISCAL POLICY INSTRUMENTS IN ISLAM POVERTY ERADICATION SOLUTIONS

Abstract

This article discusses how Islam and its fiscal policy instruments address the problem of poverty. Poverty is a very complex phenomenon, not only related to cultural issues, but also structural issues regarding how the state makes fiscal policies oriented towards poverty alleviation. Islam recommends growing the role of each individual in improving the quality of life and developing the process of social togetherness through zakat, infaq, and shadaqah. Structurally, Islam places the central role of the state in creating a just and equitable distribution of income and wealth in society and maintaining the stability and continuity of economic development in the process of progress and equity as well as being a facilitator of community empowerment in finding solutions. towards a more decent standard of living. The research procedure uses the Research library, namely research with a series of activities related to library data collection methods, reading and recording and processing research materials. The results of this discussion indicate that the value of fiscal policy according to Islamic economics is expected to carry out the functions of allocation, distribution and stabilization which have certain characteristics of the value orientation, ethical and social dimensions in state income and expenditure. Instruments developed in the current Islamic fiscal policy include; taxes, zakat, infaq, shadaqah, and endowments.