FROM THE EDITORIAL DIRECTOR

of public finance in Islam are derived from the verses of the Quran. Although certain economic teachings are to be found in the scriptures, the exact details of fiscal policies are not given. These were however elaborated upon by the Prophet of Islam, and so the Sunnah (way of the Prophet) is the second most important authority on public finance in Islam. The Quran says: ‘...of their wealth take alms’ (9: 103), and the method of the Prophet clarifies how the dues collected from the wealthy are to be distributed amongst the poor. The aim was to achieve a healthy circulation of wealth in society. This task was entrusted to the state: this may be considered an example of the earliest public enterprise in Islam. The system of public financial enterprise at the time of the Prophet was very simple as the Prophet himself did not own anything of any great value, nor did the community give much importance to wealth. At the time of the first four Caliphs, who were also Companions of the Prophet, the public money collected consisted of alms (Zakat) or certain taxes. All the funds were collected in the public treasury (bait ul maal). The money was used for specific purposes like the running of the government and the welfare of society. However, a major part was reserved for the support for orphans, widows, travellers, the sick and destitute and for assistance in the marriage of orphan girls. The second Caliph, Umar said: ‘Taxes are justified only when they are collected in a just and legal way and they are spent justly and legally.’ Since Islam kept in view the totality of human activities, the state assumed an active role in looking after the welfare of its members. Public works and care for the subjects of the states were always considered to be religious and moral obligations of the ruler. Abu Yusuf, a famous jurist always maintained the need for such state policies to secure the wellbeing of the people and increase the welfare of the subjects. Abu Musa al-Ash’ari says: ‘The best of men in authority are those under whom people prosper and the worst of them are those under whom people encounter hardship.’ Al-Ghazali too includes fulfilment of the basic needs of members of society as one of the social obligatory duties carried out by the state. He states: ‘It is incumbent on the ruler to help the people when they are facing scarcity, starvation and suffering especially during a famine or when prices are high as people fail to earn a living in these circumstances and it becomes difficult for them to make both ends meet. The ruler should, in these circumstances feed the people and