Fiscal Policy during the Prophet Muhammad’s Era and Its Relevance to Modern Fiscal Policy: A Case Study of BAZNAS South Tapanuli

Abstract

Fiscal policy in Islamic economics is not merely oriented toward efficiency in public finance management but is fundamentally grounded in the principles of justice, public welfare, and equitable distribution. These principles were systematically implemented during the time of Prophet Muhammad (peace be upon him) through fiscal instruments such as zakat, ushr, kharaj, jizyah, fai’, and ghanimah, which functioned as tools for redistribution and economic stabilization. This study aims to examine fiscal policy during the Prophet’s era and assess its relevance to contemporary fiscal practices through a case study of BAZNAS South Tapanuli. Employing a qualitative approach, this research integrates library research with a case study method, using interviews, field observations, and institutional document analysis. The findings indicate that zakat management at BAZNAS South Tapanuli represents an adaptation of Islamic fiscal principles through decentralized collection mechanisms, digital payment systems, and a productive zakat distribution model oriented toward mustahik empowerment. Nevertheless, the effectiveness of modern Islamic fiscal policy remains constrained by limited public zakat compliance and the absence of systematic post-distribution impact evaluation.