Contribution of Zakat in Fiscal System to Sustainable Development Goals Based on Maqashid Sharia Codification

Abstract

This study explores the contribution of zakat as a fiscal instrument in supporting the achievement of Sustainable Development Goals (SDGs) in Indonesia. Using quantitative approach and secondary data analysis, this study measures the effect of zakat on three SDGs indicators: poverty alleviation (SDG 1), quality education (SDG 4), and access to clean water and proper sanitation (SDG 6). The regression analysis results show that zakat has a significant influence on poverty reduction with a coefficient of determination of 91.6%, as well as a very significant contribution to increasing access to clean water and proper sanitation with a coefficient of determination of 97.6%. However, the effect of zakat on quality education is still low and not statistically significant. This study highlights the potential of zakat to fill the gap in conventional fiscal policy, especially in developing countries with limited tax revenue. Zakat can serve as an effective wealth redistribution tool, strengthen economic stability, and improve social welfare. However, the integration of zakat in the fiscal system faces challenges such as low public literacy, lack of accountability of management institutions, and the need to harmonize zakat regulations with formal fiscal policies.

The results of this study indicate that optimal, transparent, and integrated zakat management with fiscal policy can support sustainable development efforts, reduce social inequality, and encourage inclusive economic growth. Therefore, system and institutional reform of zakat management is needed to maximize its potential as an integral part of national development strategy.

Keywords: Zakat, Sustainable Development Goals, Fiscal Policy, Wealth Redistribution, Sustainable Development.