The Potential of Zakat as a Fiscal Instrument to Meet Government Expenditure Needs in Indonesia Hashfi Hizrian Atiqi
Airlangga University
Abstract
Zakat is a fiscal instrument in Islamic economics. However, the collection has not run optimally. Even though the potential for zakat in Indonesia is quite large. According to Tsaniyatul (2018) Indonesia^s zakat potential reaches 300 trillion. Meanwhile, based on the Indonesian zakat outlook for 2023, Indonesia^s zakat potential is only at 5.8 trillion. The existence of zakat in fiscal instruments can help meet government spending needs so that it does not rely entirely on tax instruments. This research aims to see the extent of the potential of zakat in contributing to fiscal policy in Indonesia. And how to make zakat contribute more through integrating zakat with the APBN. Then provide recommendations regarding improvements to zakat regulations so that zakat collection can be done obligatory, not just voluntary, so that the zakat collected can be maximized.
