State Authority in Managing Zakat as a Fiscal Instrument: An Analysis of Zakat as Special Regional Original Revenue (PAD-SUS) in Baitul Mal Aceh

Abstract

Purpose

This study aims to analyze the authority of the Aceh Government in integrating zakat into the Special Regional Own-Source Revenue (PAD-SUS) framework and to examine the role of Baitul Mal Aceh as the institutional body responsible for managing zakat within the regional public finance system.

Design/Methodology/Approach

The research adopts a qualitative methodology through legal and policy analysis, exploratory investigation, and documentation review. The study is supported by theoretical perspectives on Islamic public finance and empirical observations related to zakat governance under Aceh’s special autonomy status.

Findings

The findings demonstrate that the Aceh Government has implemented significant measures to formalize zakat as a fiscal instrument contributing to regional revenue. Zakat collection has recorded continuous growth over the past five years, although it experienced a temporary decline in 2020 due to the COVID-19 pandemic. Despite the positive trend, zakat’s contribution to PAD-SUS remains limited, primarily due to institutional capacity constraints, low compliance among potential zakat payers (muzakki), and administrative challenges in the disbursement process.

Research limitations/implications

The scope of the study is limited to Aceh Province, making the results less applicable to regions without similar legal and socio-religious frameworks. Future research is recommended to explore comparative studies across provinces or apply a quantitative model for measuring fiscal impact.

Practical implications

The study suggests simplifying zakat disbursement procedures, strengthening digital service infrastructure, and enforcing sanctions for non-compliant muzakki to maximize the effectiveness of zakat mobilization and utilization.

Social implications

Enhancing zakat governance can strengthen social welfare initiatives, support economic empowerment programs, and reinforce the integration of Islamic philanthropic practices into modern public sector management.

Originality/value

This paper contributes a novel perspective on the integration of zakat into regional fiscal systems within a special autonomy framework, offering new insights into the potential of zakat as a strategic Islamic fiscal instrument within contemporary government administration.