Governance and Anti-Corruption in Islamic Public Finance: Zakat-State Integration and Participatory Budgeting Models
Article Sidebar
-
Anti-Corruption, Islamic Public Finance, Participatory Budgeting
Abstract
This study examines the role of governance and anti-corruption strategies in Islamic public finance, with a specific focus on the integration of zakat into state fiscal systems and the application of participatory budgeting models. In contemporary contexts, zakat—as a key Islamic fiscal instrument—holds significant potential to promote social justice, transparency, and accountability, particularly when systematically incorporated into public governance structures. The research explores how good governance practices, community participation, and robust oversight mechanisms can prevent the misuse of zakat funds and enhance their distribution efficiency. Moreover, participatory budgeting is considered an innovative approach to reinforce public trust in both zakat institutions and government bodies by actively involving citizens in planning and budget supervision processes. Using a qualitative methodology based on literature reviews and case studies from selected Muslim-majority countries, the findings reveal that the synergy between Sharia principles, clean governance, and civic engagement can be an effective tool in combating corruption and reinforcing the legitimacy of Islamic public finance. This study contributes to the development of sustainable and socially just Islamic fiscal policies.
Full text article
References
Adinugroho, M. (2024). ANALYSIS OF ZAKAT MANAGEMENT EFFICIENCY LEVELS IN TWO ASEAN COUNTRIES (STUDIES IN INDONESIA AND MALAYSIA). Revista De Gestao Social E Ambiental, 18(5). https://doi.org/10.24857/rgsa.v18n5-044
Al-Bohari, M. A. (2025). Analysis of the Zakat Distribution Scheme at Universiti Tenaga Nasional (UNITEN) According to Maqasid Syariah. Journal of Fatwa Management and Research, 30(1), 199–211. https://doi.org/10.33102/jfatwa.vol30no1.669
AlShamali, S. (2023). Determinants of Zakat donor behavior in a Gulf state. Journal of Islamic Marketing, 14(11), 2821–2844. https://doi.org/10.1108/JIMA-04-2021-0113
Anggadini, S. D. (2023). DESIGNING AN MSMES INTEGRATED INFORMATION SYSTEM MODEL THROUGH ZAKAT MANAGEMENT. Journal of Engineering Science and Technology, 18(2), 902–912.
Ashurov, S. (2022). Developing a Conceptual Framework for Zakat Collection and Distribution Impact on Social Welfare Through Implications of SDGs. Research Anthology on Measuring and Achieving Sustainable Development Goals, 2(Query date: 2025-07-22 13:13:51), 422–440. https://doi.org/10.4018/978-1-6684-3885-5.ch022
Asni, F. (2024). Acceptance of Zakat institutions in Malaysia towards Micro Credit-Qard Hasan financing through Zakat fund (MCZF) for post-pandemic Asnaf entrepreneurs. Journal of Islamic Accounting and Business Research, Query date: 2025-07-22 13:13:51. https://doi.org/10.1108/JIABR-04-2024-0132
Asni, F. (2025). A Recent Systematic Review of Zakat Digitalization: Efficiency and Challenges. Journal of Advanced Research in Applied Sciences and Engineering Technology, 53(2), 130–146. https://doi.org/10.37934/araset.53.2.130146
BASARUD-DIN, S. K. (2023). Can Bitcoin be used for Zakat Payment? International Journal of Economics and Management, 17(2), 273–285. https://doi.org/10.47836/ijeam.17.2.09
Beik, I. S. (2024). Analysis on the determinant of millennials’ zakat payment through digital platform in Indonesia: A multinomial logistic approach. Journal of Islamic Marketing, 15(2), 541–572. https://doi.org/10.1108/JIMA-09-2021-0313
Bin-Nashwan, S. A. (2025). Beyond complexity: Do alms tax (zakat) law intricacies justify non-compliance behaviour? Journal of Financial Regulation and Compliance, 33(3), 307–325. https://doi.org/10.1108/JFRC-08-2024-0165
Ghani, R. H. A. (2022). A Proposal for “Value Innovation” Framework Based on the Blue Ocean Strategy: The Case of Kedah State Zakat Board and Malaysia Hajj Pilgrims Fund Board. Bild Law Journal, 7(1), 37–46.
Ghaouri, M. H. (2023). BEHAVIOURAL INTENTION OF ZAKAT PARTICIPANTS TOWARDS THE ZAKAT FUND IN MOROCCO. Isra International Journal of Islamic Finance, 15(1), 36–53. https://doi.org/10.55188/ijif.v15i1.484
Hadi, R. (2024). Digital zakat management, transparency in zakat reporting, and the zakat payroll system toward zakat management accountability and its implications on zakat growth acceleration. International Journal of Data and Network Science, 8(1), 597–608. https://doi.org/10.5267/j.ijdns.2023.8.025
Hanifuddin, I. (2024). Al-Qar? al-?asan Program of Bankziska: Zakat Fund-Based Empowerment Model for Victims of Loan Sharks. Juris Jurnal Ilmiah Syariah, 23(1), 1–12. https://doi.org/10.31958/juris.v23i1.10799
Haryanto, R. (2023). DIGITAL LITERACY AND DETERMINANTS OF ONLINE ZAKAT PAYMENTS LESSONS FROM INDONESIA EXPERIENCE WITH UTAUT. Journal of Law and Sustainable Development, 11(4). https://doi.org/10.55908/sdgs.v11i4.575
Hassan, M. K. (2024). Application of Zakat: From Classical and Contemporary Perspective. In Application of Zakat from Classical and Contemporary Perspective (p. 240). https://doi.org/10.1142/13406
Hayati, R. F. (2023). AN EXPLORATION OF THE INNOVATION DEVELOPED AND ADOPTED BY INDONESIAN ONLINE ZAKAT INSTITUTIONS IN THE ERA OF SMART SOCIETY 5.0. Milrev Metro Islamic Law Review, 2(2), 175–186. https://doi.org/10.32332/milrev.v2i2.8091
Junoh, N. (2023). Analysis of Zakat Management Strategy in Dealing With COVID-19: An Overview of Zakat, Sedekah and Wakaf Unit UiTM Kelantan (UZSW). Journal of Fatwa Management and Research, 28(1), 116–131. https://doi.org/10.33102/jfatwa.vol28no1.502
Kamaruddin. (2023). Cultural-Based Deviance on Islamic Law; Zakat Tekke Wale’ Spending in Basala, Konawe, Southeast Sulawesi, Indonesia. Al Ihkam Jurnal Hukum Dan Pranata Sosial, 18(2), 568–590. https://doi.org/10.19105/al-lhkam.v18i2.10150
Kurniawan, R. (2022). A Web-Based Zakat Recipient Determination System using the Naïve Bayes Algorithm. 2022 5th International Conference on Computer and Informatics Engineering Ic2ie 2022, Query date: 2025-07-22 13:13:51, 337–341. https://doi.org/10.1109/IC2IE56416.2022.9970014
Mahadi, N. F. (2022). AN ANALYSIS OF WAQF, ZAK?T, QAR? AND TAK?FUL AS ISLAMIC SOCIAL FINANCE INSTRUMENTS: JURISTIC VIEWS. Iium Law Journal, 30(Query date: 2025-07-22 13:13:51), 37–56. https://doi.org/10.31436/iiumlj.v30iS2.762
Maswadeh, S. (2023). Comparison Between Zakat and Income Tax Receipts from Jordanian Companies’ Sectors. Studies in Computational Intelligence, 1113(Query date: 2025-07-22 13:13:51), 119–128. https://doi.org/10.1007/978-3-031-43300-9_11
Mawardi, I. (2023). Analyzing the impact of productive zakat on the welfare of zakat recipients. Journal of Islamic Accounting and Business Research, 14(1), 118–140. https://doi.org/10.1108/JIABR-05-2021-0145
Mubin, M. U. (2022). Contextualization of Musta?iq Zakat at LAZNAS Nurul Hayat Surabaya. Al Manahij Jurnal Kajian Hukum Islam, 16(2), 193–208. https://doi.org/10.24090/mnh.v16i2.6915
Musa, A. (2022). Digital-Based Information System of Zakat Management in Indonesia: Strategies for Increasing Revenue in Fiqh Muamalah Perspectives. Samarah, 6(2), 614–633. https://doi.org/10.22373/sjhk.v6i2.11960
Nor, S. M. (2024). Digitizing Zakat Distribution in Malaysia: A Case Study on Application Process at Kedah State Zakat Board. Samarah, 8(3), 1901–1927. https://doi.org/10.22373/sjhk.v8i3.24158
Nurhayati, N. (2023). An Empirical Study on the Impacts of Quality Information and Competency of User on the Quality of Zakat Management Information System in Indonesia. Journal of System and Management Sciences, 13(3), 233–243. https://doi.org/10.33168/JSMS.2023.0316
Oktavendi, T. W. (2022). Acceptance model for predicting adoption of Zakat, Infaq, and Sodaqoh (ZIS) digital payments in Generation Z. Journal of Islamic Accounting and Business Research, 13(4), 684–700. https://doi.org/10.1108/JIABR-09-2021-0267
Rabbani, M. R. (2022). A Fintech-Based Zakat Model Using Artificial Intelligence. Fintech in Islamic Financial Institutions Scope Challenges and Implications in Islamic Finance, Query date: 2025-07-22 13:13:51, 49–63. https://doi.org/10.1007/978-3-031-14941-2_3
Sadallah, M. (2022). Business zakat compliance in Algeria: An ethical perspective. International Journal of Ethics and Systems, 38(2), 338–355. https://doi.org/10.1108/IJOES-04-2021-0085
Sadallah, M. (2023). Alms tax (ZAKAT) compliance intention among entrepreneurs from a social cognitive perspective: The moderating role of knowledge. Journal of Islamic Accounting and Business Research, 14(8), 1133–1151. https://doi.org/10.1108/JIABR-04-2022-0104
Sapingi, R. (2023). Assessing The Extent of Disclosure and Information Asymmetry in Malaysian Zakat Institutions. International Journal of Economics and Management, 17(1), 1–18. https://doi.org/10.47836/ijeam.17.1.01
Siswantoro, D. (2022). COMPANY ZAKAT ASSESSMENT METHODS IN SELECTED JURISDICTIONS. Journal of Governance and Regulation, 11(2), 286–292. https://doi.org/10.22495/jgrv11i2siart7
Siswantoro, D. (2023). An Assessment of Corporate Zakat Payment During Covid-19 Pandemic. Lecture Notes in Networks and Systems, 620(Query date: 2025-07-22 13:13:51), 66–71. https://doi.org/10.1007/978-3-031-26953-0_8
Subekti, R. (2022). CAN ZAKAT AND PURIFICATION BE EMPLOYED IN PORTFOLIO MODELLING? Journal of Islamic Monetary Economics and Finance, 8(Query date: 2025-07-22 13:13:51), 1–16. https://doi.org/10.21098/jimf.v8i0.1418
Wahyuni, A. (2024). Between Tradition and Religious Doctrine: Questioning Kiai’s Status as Zak?t Recipient. Al Ihkam Jurnal Hukum Dan Pranata Sosial, 19(1), 174–196. https://doi.org/10.19105/al-lhkam.v19i1.8780
Authors
Copyright (c) 2025 Mahfuz Mahfuz, Nur Jamludin, Ahmad Khoirur Roziqi, Didi Didi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
