Hazrat Ali's reforms: The Finance Department

Society Religion & Philosophy
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I found this sooooooooo interesting: :Pretty:

It’s basically about the reforms he undertook - an introduction of new system of government.

To make due arrangements for security of the state from external attacks, to preserve law and order, to control corruption and bribery, to provide equality of opportunities and equal distribution of public wealth among his subjects, to appoint honest and pious officers, to chastise and remove from service dishonest ones, to maintain a powerful army, to avoid enrollment of mere mercenaries in it, to take care of trades and traders and treat non-Muslims with deserving leniency and respect, were apparently the items of his programme which he successfully carried out.

Division of Public Service Departments.

He divided the state service into following sections:

  1. Public Finance,
  2. Army,
    3.Central Secretariat,
    4.Judiciary,
  3. Provincial offices

Finance Department: The department of the Public Finance was divided into two section:-

a. Collection section and
b. Distribution sections.

Collection Section was sub divided into three heads and only three kinds of taxes were allowed to be collected by Hazrath Ali:-

(i) Land Revenue: It was usually collected in coins of silver and gold or in bullion. Officers to collect this revenue were some times appointed by the centre, but Hazrath had also authorised the governors to appoint such officers themselves.

(ii) Zakath (poor rate) and Sadaquath (poor fund); it weis usually collected in kind or in live-stock. Officers to collect this revenue were always appointed directly by Haz-rath and he took great care to appoint honest and pious persons on these posts and to keep a sharp look out on their activities and behaviour.

(iii) Jaziyah: a tax from non-Muslims in lieu of Zakath etc. and in return for the security and amenities provided to them. Collection of no other kind of tax, from non Muslims, was allowed by him.

Land survey was carried on by him wherever necessary. Every tax-payer had the right to appeal and an appellate jurisdiction was brought into force. Officers for this court of appeal were directly appointed by Hazrath.

He was the first man to introduce the Budgetary system for collection of Revenues and for its Expenditure. Every province had to present its budget direct to him for approval. The incomes were divided into two heads; provincial and central. Zakath and Sadaquath were items of the Central Revenues, Land Revenue and Jaziya were Provincial Incomes.

The schedule of rate for Land Revenue was fixed by him as under:-

  1. Ist class (most fertile)l and 1 1/2 Dirham per Jareeb

  2. 2nd class fertile land I Dirham per Jareeb

  3. 3rd Grade land 1/2 Dirham per Jareeb

  4. Vine yards, and Orchards and date palm groves 10 Dirhams per Jareeb

    (Note I Jareeb = 2268 3/4 sq. yd.)

Sadaquath and Zakath were the taxes which only Muslims had to pay. It was a tax levied on personal income, landed property, hoarded bullion and currency and on live stock, its rate was that which was fixed by tenets of the Muslim Law.

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Jaziya was a personal tax, collected per head of a person irrespective of his income or property. But such persons were divided into classes. It was an annual tax. The division of classes was as under:-

Ist class: Very rich persons and land-lords 48 Dirhams per head

2nd class: Middle class people 42 Dirhams per head

3rd class: Businessmen 42 Dirhams per head

4th class: General public 12 Dirhams per head

**There were positive orders that no Jaziya was to be collected from beggars, and persons falling in following categories.

1.Those who were above 50 years of age
2. Those who were below 20 years of age
3. All women-folks
4. All paralysed persons
5. All disabled persons
6. All blind persons
7.All mad persons

**

Income from the source of Zakath and Sadaquath was reserved for the following heads:

A. Administration of the Departments of Collection and Distribution.

B. Grants, Donations and aids to poor, have-nots, orphans, aged widows and disabled persons.

C. Honorarium to volunteers who fought for the state

D. Pensions to widows and orphans of soldiers and officers of the army

E. To acquire and to set free slaves from the bondage of slavery.

F.Reparation of government loans

G.To help Hajis whenever and wherever they were found stranded.

Items C to F were for the first time introduced by Hazrath Ali and so far as F was concerned previously no king ever thought his kindom to be morally obliged to pay back a loan taken from somebody.

Hazrath Ali was the first man who declared that a ruier's share of income from the state was equal to that of any commoner.

Income from Jaziya was car-marked for the following items of expenditure:-

  • Maintenance of army. [ii] Construction and maintenance of Forts [iii] Construction and maintenance of Roads and Bridges
    [iv] Well sinking [v] Construction of Sarais (Rest houses)

Land Revenue was the provincial income to be spent on maintenance of courts, offices, and other necessary items as per orders of the Centre. He said "So far as collection of land revenue is concerned you must always keep in view the welfare of the tax-payer, which is of primary importance than the taxes themselves, and as actual taxable capacity of people rests on fertility of land therefore more attention should be paid to fertility of land and prosperity of the subjects than to the collection of revenues.

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Distribution of Public wealth was a subject on which Hazrath Ali spent much time and thought and which in return caused him to lose many adherents and followers.

The first reform that Hazrath Ali (A.S.) introduced was to reorganize the Treasury and the Accounts department. Dishonest officers were removed from the service. A sy_stem of accounting was introduced. Oosman-ibne-Haneef was appointed as the Chief Treasury Officer. The principle of equal distribution of public money was introduced. The system of weakly distribution was for the first time adopted. Every Thursday was the distribution day or pay day so that Muslims could spend their National Holiday of Friday happily. Every Thursday accounts were closed and every Saturday started with fresh books of accounts.

Impartiality and equity were the key-notes of his policy of distribution of wealth. At the Centre (Koofa) he often supervised the distribution himself and after the work was over and accounts cleared he would sa,, prayers in the Treasury and thank his Lord that he had performed his duty faithfully.

Imam Shoobee says that as a young boy once he passed the Treasury at the time when Hazrath Ali was supervising the distribution, he saw negro-slaves standing in line with the Arab Shaikhs and getting equal shares, and within a short time the heaps of silver and gold coins disappeard, the Treasury was cleared, Hazrath Ali said the prayers and left the officie empty handed. That day he had given his share to an old woman who complained that her share was iot sufficing her (Kitab-e-Gharath).

**Once one of his favourite and trusty companion, Oosman-ibne-Haneef, told him that by introduction of the principle of Equal Distribution of wealth and bringing important persons down to the level of commoners, by raising the status of Negroes, and Persian to that of Arabs, by allotting shares to slaves equal to their masters, by depriving the rich persons of their jagirs and by stopping special grants apportioned to them according to their status, he had done more harm to himself and his cause than good. Continuing he said

"Look my Lord, these are the reasons why influential and rich Arabs are deserting you and are gathering around Moavia. Of what use these poor persons, disabled people, aged widows and Negro slaves are to you. How can they help and serve you?"

He replied

"I cannot allow rich and influential persons to exploit the society of this Muslim state and to run an inequitable and unjust system of distribution of wealth and opportunities. I cannot for a moment tolerate this. This is public wealth, it comes from the masses it must go back to them. The rich and powerful persons have not created any wealth, they have merely sucked it from the masses and after paying the taxes, etc., what is left to them is many times more than what they pay to the state and they are welcome to retain it. Had all this been private property I would have gladly distributed it in the same manner.

So far as their desertion is concerned I am glad they have deserted me. So far as the usefulness or services of these disabled persons and have-nots is concerned, remember that I am not helping them to secure their services, I fully well know they are unable to serve me.

I help them because they cannot help themselves and they are as much human-beings as you and 1. May God help me to do my duty as He wishes me to do". (Kitab-e-Gharath). **

Got this from Peak of eloquence :) Please excuse my ignorance but do Islamic states nowadays follow similar way of dealing with finances?

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Jazaak Allah :)

No Muslim Govt is following these guidelines now, but on the other hand most of the western welfare states are following most of these guidelines. irony or what :(

Hazrat Ali karam Allah wajho was surely most wisest and most kindest for all his people.

[QUOTE]
So far as collection of land revenue is concerned you must always keep in view the welfare of the tax-payer, which is of primary importance than the taxes themselves, and as actual taxable capacity of people rests on fertility of land therefore more attention should be paid to fertility of land and prosperity of the subjects than to the collection of revenues.
[/QUOTE]

Just out of curiosity was at that time the Muslim govt had any loan to repay, or it was guideline to follow in later time

[QUOTE]
*F.Reparation of government loans *
[/QUOTE]

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[QUOTE]
*Originally posted by Code_Red: *
Just out of curiosity was at that time the Muslim govt had any loan to repay, or it was guideline to follow in later time

[/QUOTE]

Loans themselves are not unislamic - but it's making profit on loans that is not permitted. I'm sure that there during his reign as Khalif and Ameer-ul-Mumineen, there were plenty of wealthy, pious people who were willing to lend money to the Islamic state and not make a profit on it, as an act of charity, much as you may lend money to a family member and not expect them to pay back a greater value than they borrowed as an act of charity.

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[QUOTE]
*Originally posted by little human: *

Imam Shoobee says that as a young boy once he passed the Treasury at the time when Hazrath Ali was supervising the distribution, he saw negro-slaves standing in line with the Arab Shaikhs and getting equal shares, and within a short time the heaps of silver and gold coins disappeard, the Treasury was cleared, Hazrath Ali said the prayers and left the officie empty handed. That day he had given his share to an old woman who complained that her share was iot sufficing her (Kitab-e-Gharath).

Assalam Aleekum
Holy Prophet Muhammad(SAW) had specified that his(SAW)
family will not take zakat. So how is this book claiming that
he(Harzrat Ali-RA) gave his share to the old lady.

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Rehman1 I am not sure if Distribution of Public wealth = Zakat

According to the book Zakat is in the form of the following:-

*) Zakath (poor rate) and Sadaquath (poor fund); it is usually collected in kind or in live-stock. *

in kind here means (of payment) in goods, not money

So if zakat was collected in terms of goods and live-stock then why was the distribution in terms of silver and gold coins?

:konfused:

Code_Red Hain? I thought koi na koi tu follow karay ga :confused:

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:konfused: :konfused:
I am confused myself.

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Islamic government financial system is not based only on Zakat system. From here your confusion starts because in Ahle Sunnah in peace days, there is nothing else other than Zakat to meet expenses of Government. However in shia in peace days Zakat is for poor and needy people of the state. In addition to Zakat, there is Khums to run the system of an Islamic state.

To know more about it you can goto these webpage.
http://www.al-islam.org/beliefs/practices/khums.html
http://www.al-islam.org/encyclopedia/chapter6b/4.html

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^ I think if the descendants of the prophet are poor they will get half of the khums, is it? Inuit, Distribution of Wealth=?what

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as usual my question remained unanswered

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I found the following on another website:

[thumb=E]Jang20861_8994257.JPG[/thumb]

Havne'nt checked the Jang of 31 October 2002 though.

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interesting post, but a few things do not make sense..

[quote]

Income from Jaziya was car-marked for the following items of expenditure:-

  * Maintenance of army.
  [ii] Construction and maintenance of Forts
  [iii] Construction and maintenance of Roads and Bridges
  [iv] Well sinking
  [v] Construction of Sarais (Rest houses)

[/quote]

so, if there were no non-muslims living under your rule,, there was no maintence of army, no construction and maintenance of forts, etc etc?

or are you saying that other taxes were spent on these as well... but jaziya could be spent only on these things???

cuzz if it is the second.. your post sure doesn't indicate that.

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[QUOTE]
*Originally posted by rehman1: *
as usual my question remained unanswered
[/QUOTE]
If possible make a database of your questions which are not answered yet. however little human tried to answer your question.

*little human wrote: * I think if the descendants of the prophet are poor they will get half of the khums, is it?

*little human wrote: * Rehman1 I am not sure if Distribution of Public wealth = Zakat

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:silly: Talk about yourself

I think the distrbution of wealth does not equal to zakat. It is the public treasury (Bayt Al-Mal ). Jaziyah, land and other taxes collected by the state make up this fund, so if Ahlulbait received his share it’s probably his right and was not charity that he received.

Zakat is given directly to the needy and NOT distributed to everyone I think. Afterall it says distribution of public wealth NOT zakat. . Zakat and sadaqah is given directly to (needy) people, it is not paid into the public funds.

I can’t read it properly anyone can do little summary about what it says?

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^ Above doesn’t seem to make sense and I think if REALLY there werent’ any non-muslims they will get the money needed for above from other sources like land tax.

But it seems it’s unlikely EVERYONE under your rule would be muslims :slight_smile:

I guess jaziya at that time was set aside for this as mentioned in the above extract, but I don’t think it’s just for these things.

:rotfl:

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L-H

[quote]

^ Above doesn't seem to make sense and I think if REALLY there werent' any non-muslims they will get the money needed for above from other sources like land tax.

[/quote]

that is exactly what your post does not clarify..

The tax distribution scheme you has mentioned, does not mention what other sources of the 'military machinez' funding were or would be.

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ear-marked for the following items of expenditure:-

  * Maintenance of army.
  [ii] Construction and maintenance of Forts
  [iii] Construction and maintenance of Roads and Bridges
  [iv] Well sinking
  [v] Construction of Sarais (Rest houses)

I don’t see jaziya being set aside for “military machines”

The Jaziya is incorporated into the public fund, but its spending is earmarked, to ensure balanced spending. Basically, it is like setting a budget and allocating funds to a particular area.

I dont’ quite understand why you are picking on Jaziya? if it’s set aside for something, what’s wrong with that? :konfused:

PS. my post is a extract from a book which does NOT specialize in tax systems in Hazrat Ali’s rule, it more of a basic idea of how things were at that time. (Not into details) :slight_smile:

Edited for spelling errors :slight_smile:

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[QUOTE]
*Originally posted by little human: *

I can't read it properly anyone can do little summary about what it says?
[/QUOTE]

It is apparently extract from a London edition of Daily JANG dated 31 Oct 2002. It says that

United nation in its annual report has said that the period of Hazrat Ali 's Khilafat is ideal. And advised the Arab countries to follow his footsteps to get rid of their problems

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:eek: Now I remembered i read a silmilar article long time ago. Actually I was surprised the UN mentioned this. :slight_smile: Hahhh but would the Arab states listen? :o