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It isn`t Permissible to Expand Government Expenditures even within the Budget
Author : The General Iftaa` Department
Date Added : 18-10-2022

It isn`t Permissible to Expand Government Expenditures even within the Budget

 

State budget is prepared based on the needs of government departments over the coming year. However, if there is no need for spending , then it isn`t permissible to do so, because every person in charge is in a position of trust as regards the public money at their disposal. If the money isn`t spent according to the actual need, then this is disobeying Allah, betraying trust, and making every member of society their opponent before Allah on the Day of Judgment.

Budget surplus must be returned to the public treasury. Last year, the Iftaa` Department returned (488.000 JDs). This is attested to in the following narration: Ibn 'Umar (May Allah be pleased with them) reported: The Prophet (PBUH) said, "All of you are guardians and are responsible for your subjects. The ruler is a guardian of his subjects, the man is a guardian of his family, the woman is a guardian and is responsible for her husband's house and his offspring; and so all of you are guardians and are responsible for your subjects." [Al-Bukhari and Muslim].

By Grand Mufti,

Dr. Nooh Salaman Al-Qhodat

 

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Someone asked me to pay off his debt on his behalf as a loan, without any compensation. When I went to the creditor, he told me that if I paid the full amount at once, rather than in installments, he would give me a certain discount. Is this permissible? And if he applies the discount, to whom does the deducted amount belong?

If part of the debt is paid and the creditor forgives the remaining amount, the waiver is valid, and the remaining debt is no longer the responsibility of the original debtor. The person who paid the debt on behalf of another has no right to claim any portion of the original debt. And Allah Knows Best.

I work at a company that provides cash advances of 800 dinars, 1000 dinars, or 1200 dinars, depending on the employee’s years of service. An administrative fee of 40 dinars is deducted from the amount in the first month, and the remaining amount is repaid in installments. What is the ruling on this, knowing that the deducted amount (40 dinars) is fixed?

We fear that the deducted amount may be a means of circumventing interest (Riba). If the deducted amount is equal to or less than the actual administrative expenses, then there is no issue, as some scholars permit the borrower to bear the costs of documenting and managing the loan. However, piety suggests refraining from taking this loan under these conditions, as dealing with private individuals and companies is not the same as dealing with the state, which spends from the public treasury. And Allah Knows Best.

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