CHAPTER I PRELIMINARY

Fact History shows that Islam is aliving system that is komprehensif, which regulates all aspects, whether in social, economic, and political, and spiritual nature. In economic life, of God as set rule which are the limits of human behavior that benefits an individual without harming individuals other. These are to be supervised by the enactment of rules based on Islamic rules, to guide individuals so that they are properly implement the rules and control and oversight of these rules. This is different from other economic system are located on the moral and ethical rules established in. Rule in Islamic economics is a rule which is based on the conceptual framework in conjunction with the supreme power (God), life, humanity, world, fellow creatures and humanity. While final destination on the other systems there are no rules that define the boundaries of human behavior that could harm the party and other parties benefit.

CHAPTER II DISCUSSION

A. BAITUL MAL

Baitul Mal is an institution that runs the functions of economic and social development of an Islamic state. In most economic literature and the history of classical Islamic civilization, the mechanism of Baitul Mal is not always separated from the function of the Caliph as head of state. This means that decisions concerning the treasury and all institutional policy is predominantly carried out by the Deputy.

Baitul Mal existence of institutions initially a consequence of management professionalism that made managing zakat (amyl). But it also reflects the scope of Islam, where Islam is defined as well as religion and government, the Quran and the power, so the Baitul Mal became one of the components that perform these functions and powers of state government. Joseph Qardhawy (1988) divides treasury into four parts (division) work based on postal acceptance, refer to the application of classical Islamic period: A. Special department for alms (zakat). 2. Special department to save taxes and tribute. 3. Special department for ghanimah and rikaz. 4. Special department for the unknown property heirs, or who lost his birthright (such as murder).

B. PUBLIC REVENUES The public revenue can be broadly classified into two: a. Tax Revenue: It is the most important and major source of public revenue. Government may require the members of the community to contribute to the support of governmental functions through the payment of taxes. An individual has no right to directly demand social services in return to his payment of tax nor has he any other choice except to pay the tax when it is levied on him.
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Taxes, in general, serve both functions of a revenue system: (i) they provide funds, and

(ii) they reduce private consumption and investment. b. Non-Tax Revenue: Non-tax revenue is derived from public undertakings called Prices and other miscellaneous receipts. It also raises loans, short-term and longterm, to augment its revenues. Other minor revenue sources are fees, special assessment, fines, forfeitures and escheats, tributes and indemnities, gifts and grants.

C. PUBLIC EXPENDITURE Public expenditure is represented by two categories of government activity: First, the depth of public expenditure. Associated with the purchase of government goods and services (eg, labor) and capital goods and services (eg, road construction investment). Indepth public expenditure is the purchase of public sector input and is calculated by multiplying the number of input prices. Public expenditure can be explained by: 1. Changes in demand for the output end of the public sector. 2. Changes in production activities to produce a number of public sector output and changes in various inputs used in the production process. 3. Changes in the quality of public sector output. 4. Changes in input prices. Public expenditure arising from the activities carried out public sector. Level of production activities of public sector output is determined by the public sector medium requested by voters, the population size, product quality, and public sector environments. Increased public spending is also due to the increase in input prices used in the production function of the public sector. Problem of public sector is not able to balance the increased cost of benefits increase productivity, economies of scale and technological change. This problem is analyzed by Baumol to calculate the increase in production costs of government services.

Baumol divided the economy into two sectors, namely the progressive and nonprogressive. Sector is characterized by a progressive increase in cumulative productivity per hour of work, arising from economies of scale and technological change. In nonprogressive sector, labor productivity increased more slowly than the progressive sector. Baumol outcome depends on the difference in productivity between the two sectors. But it does not mean that the increase in productivity in the non-progressive is always zero.

D. ZAKAT Zakat is a particular source of public revenue that has the potential to address a country's economic problems. Abu Ubaid famous in his book, Al-Amwal, discusses zakat as a comprehensive source of public revenues based on its analysis of the Qur'an, hadith, hadith, and ijtihad of the scholars without holding on to a particular madhhab (eclectic). Abu Ubaid thoughts about the charity is a matter that should be appreciated and can be used as a consideration and analysis tools to apply the policy of the charity in the modern world, especially in Indonesia is predominantly Muslim. Indonesia government's attention to the management of zakat can be seen from the establishment of Law No. 38 of 1999 on Management of Zakat. In this discussion the author tries to capture zakat policy in Indonesia is reviewed from the perspective of Abu Ubaid. Position of zakat in Indonesia's economy is not yet a source of income as well as the official state taxes, he is also not included in the non-tax revenue sources. Zakat in Indonesia is still not regarded as the official state revenue sources so that it is governed by a particular institution is the National Agency for Amil Zakat (BAZNAS) formed the government and non-Amil Zakat (LAZ), which formed the community. Judging from the increase in zakat management objectives for public services in regular charity according to his religious beliefs, increasing the function and role of religious institutions in efforts to achieve social welfare and social justice, increasing the efficiency and usability of zakat, zakat is seen that the management is more devoted to Muslim community can carry out its obligations and has not seen a government initiative to make it as an official government source of public revenue. This may be due to the country Indonesia is not a Muslim country and still many obstacles to make it happen.

E. THE FISCAL POLICY Unlike conventional fiscal policy, in which a government can affect economic activity through various incentives in the tax rate and the amount of 'tax. base 'of an economic activity, then the system of zakat, on the terms of the magnitude of' tariff 'zakat has been determined based on the instructions of the Prophet. Therefore, the policy is very different from the zakat tax policy.

Zakat is a major component in the public finance system as well as major fiscal policy in the Islamic economic system. Zakat is an activity that is obligatory for all Muslims. Nevertheless there are still other components, which are voluntary, which can be used as another element in the source of state revenue. Voluntary components are related is associated with a person's level of devotion.

Government financial resources beyond the zakat can be determined as long as not contrary to the provisions of the existing sharia. New sources of financial resources can be established after a review process jurisprudence. For example, whether to remove poverty, governance allowed to levy taxes beyond Zakat? This question is one of debate among jurists that are characteristic of how a fiscal policy can be executed in the Islamic system of government. While the new taxes in public finance in the conventional economic system studied based on different principles. One of the principles used in the public financial system of conventional economics is the principle of fairness. In public finance, the fairness issue is said to be a matter of 'ethics' is full of value judgments. For that, they determine some principles that should be considered in the value judgment that the benefit principle and ability to pay principle. Admittedly, the system analyzes the Islamic public finance system has not been as advanced as in conventional public finance analysis. Still need to work hard to develop ideas relating to public finance Islamic. And Allaah knows bestShawab bus.

F. AL-KHARAJ REVENEUS FROM STATE PROPERTIES In the early development of Islam the main source of state revenue is khums, sodaqoh fitrah, zakat, kharaj (land tax) and the jizya (tax collection). Khums was issued in two emigration. Sodaqoh nature required in year 2 also migrated. Withdrawn kharaj moved in 7 years, after beating Khaibar. Zakat is required in 8 Hijra and levy determined in 8 moved anyway (Sadr, 1989). At the time of the Prophet, government policies relating to State revenue is to distribute all income received. The policy change at the Caliph Umar. At that time the income increased sharply and the Baitul Maal is permanently established in the city center and the provincial capital, so that the remaining Khums in Arabic means one-fifth. Khums is one source of income Baitul Maal, as mentioned in the Qur'an (8:41). One-fifth to Allah and His Messenger are to be used for the general welfare state (Pickthall, 1969). Prophet usually membagai khums into three parts, the first part for himself and his family, the second part to his relatives and the third for orphans, the needy and those who are on their way. The other four-fifths divided among the soldiers who took part in the war (in certain cases some people who did not participate in the war also get a share). Horsemen have two parts (for himself and his horse), a section for men, women present in the war to help some things do not get a share of the spoils of war (Sabzwari, 1984). Kharaj refers to the income from the rent of farms and forests belong to the ummah. If the soil is cultivated and orchards owned by non-Muslims fall into the hands of Islam due to losing the battle, those assets become part of public ownership of the Muslims. Therefore, anyone who wants to cultivate the land must pay the rent. Revenues from these leases are included within the scope of kharaj. An example is rent collected over some land in Khaibar which is the spoils of war and into public ownership Muslims (Sadr, 1989). When Khaibar conquered, the land was taken over by the Muslims and the owner of the length of offering to cultivate the land in lieu of rent and are willing to give a portion of production to the state. Kharaj amount of land is fixed at half of the output. Messenger of Allah used to send people who have knowledge in this matter to estimate the total amount of output. After reducing the excess of the estimated one-third, two thirds of the share and they are free to choose, accept or reject the subdivision. The same procedure was also applied in other areas. Kharaj is becoming an important source of income (Sabzwari, 1984).

CONCLUSION Financial System The main role is to encourage efficient allocation of financial resources and real resources for various purposes and objectives of diverse nature. Financial systems of well-functioning will create investment by identifying and funding good business opportunities, mobilizing savings, monitor the performance of managers, prompting the trade, diversify risk, and facilitate the exchange of good and services. Economic benefits of market operations of Islamic financial system with the form: Government spending is rationalized in full; Income tax and the income derived from assets that are legally placed in the domain of government by sharia, can be upgraded to meet the needs of government spending; Financial sector can be liberalized to allow the return of the sector reflects the return of the real economy, and Capital markets can be developed to help finance investment projects outside the banking institutions; Joseph Qardhawy (1988) divides treasury into four parts (division) work based on postal acceptance, refer to the application of classical Islamic period: A. Special department for alms (zakat). 2. Special department to save taxes and tribute. 3. Special department for ghanimah and rikaz. 4. Special department for the unknown property heirs, or who lost his birthright (such as murder). Public expenditure can be explained by: 1. Changes in demand for the output end of the public sector. 2. Changes in production activities to produce a number of public sector output and changes in various inputs used in the production process. 3. Changes in the quality of public sector output. 4. Changes in input prices. Zakat is a major component in the public finance system as well as major fiscal policy in the Islamic economic system. Zakat is an activity that is obligatory for all Muslims. Nevertheless there are still other components, which are voluntary, which can be used as another element in the source of state revenue. Voluntary components are related is associated with a person's level of devotion.

REFERENCES

Haider Naqvi, Nawab.2010. Pemikiran Ekonomi Islam Kontemporer. : Rajawali Pers. Http://www.bankamalshaleh.blogspot.com|2007| 23 februari 2012 |19:00 WIB. Jakarta. Mirakhor, Abbas. 2008. Pengantar Keuangan Islam. Jakarta : Kencana. Nuruddin, Amir. 2009. Ekonomi Syariah. Medan : Cita Pustaka Media Printis. Qardhawi, Yusuf. 2004. Peran Nilai dan Moral dalam Perekonomian Islam. Jakarta : Press