The Islamic Fiscal Policy Approach to Poverty Alleviation and Global Social Welfare

Abstract

This study aims to comprehensively analyze the role of Islamic fiscal policy in alleviating poverty and promoting social welfare through a historical-literature approach that synthesizes research findings from the past five years. The analysis draws upon a wide range of scholarly articles and international reports, including empirical investigations of maqāṣid al-sharī’ah–based fiscal policies applied in both national and global economic settings. The findings indicate that Islamic fiscal policy operates as a value-driven framework designed to harmonize economic efficiency, equitable wealth distribution, and moral responsibility. Key fiscal instruments such as zakat, infaq, and waqf play a vital role not only as redistributive mechanisms but also as sustainable vehicles for social empowerment and inclusive development. Moreover, integrating Islamic social finance into national fiscal strategies strengthens economic resilience, broadens the social funding base, and enhances public trust in government institutions. This study concludes that Islamic fiscal policy provides a practical and ethically grounded alternative for achieving inclusive, justice-oriented, and sustainable development at the global level, aligning with the vision of the Sustainable Development Goals.