IESTC WORKING PAPER SERIES

​#    ​​​Title ​  Authors
​​ ​​​November, 2019 ​
​ 05-2019 Constitutional Rules and Islamic Religious Revenues Abdul Ghafar Ismail

 

Abstract

This study asks five questions. How does the constitution define the framework for its governance and the principles under which it must operate? How do the provisions lay out the core public finance matters? How are Islamic religious defined? How could we interpret the provisions in the constitution? How does the Islamic religious revenues affect the socioeconomic development? Based on the analysis of these questions, this study will try to explain the choice of alternative sets of legal-institutional-constitutional rules that constrain the choices and activities of economic and political agents (government). In particular, this study will prove that the constitution is the result of preferences of both conventional and Islamic scholars. The constitutional rules lead to the introduction of Islamic religious revenues as the sources of government revenues. Furthermore, in Malaysia, the constitutional economics also provide another view which treat Islamic religious revenues as the tools for socio-economic development.

Keywords: fiscal policy, economic development, Islamic religious revenues, multilevel governance, federalism JEL classifications:H72, H77, K40, O23, P43,