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The permissibility of public borrowing in Shari'ah depends , on certain conditions and circumstances.That is to say: in principle Shari'ah has its own system of raising financial resources for the government. These resources must be sufficient under normal

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  1. The permissibility of public borrowing in Shari'ah depends, on certain conditions and circumstances.That is to say: in principle Shari'ah has its own system of raising financial resources for the government. These resources must be sufficient under normal circumstances. There are, however, exceptions. Al Juwaini for instance says "It is not right for us to invent methods in bringing good to servants of God and procuring means of wise action which have no roots in Shari'ah, since this bears a great deviation and an enormous danger", p.287. Some scholars, e.g., many Shafi'ites argue that the government may not keep any surplus in the treasury since a surplus in Bait al Mal is an exclusive right of present generation of people. It should be given away to them in terms of direct distribution like what 'Umar did, or in terms of governmental projects such as building of dams, mosques and shelters for the poor and needy. People who subscribe to this view argue that should a need arises in the future, the government can always collect from the public amounts sufficient for fulfillment of its responsibility by means of taxes or loans, (al Mawardi, p. 215 and al Juwaini, p.249). Apparently, this is a reference to budget balancing on an annual basis as well as a license to impose taxes and/or loans from the public when a need arises. However, though himself a Shafi'ite, al Juwaini challenges this opinion on the ground that in case of anticipated needs in the future, saving the surplus may be wiser especially that keeping some reserve in Bait al Mal is always beneficial and a sound policy, (p.250). The Hanafites agree with this view especially events are usually unpredictable and some urgent need might arise, (Al Mawardi, p.215). Al Juwaini even questions the wisdom of spending on luxuries like building small dams (!) and beautiful houses while exhausting a reserve fund which could otherwise be saved for future use to be spent on the army, (p.251). 65 1. 2.

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