In this encyclopedic entry, Professor Dr. Abul Hasan M. Sadeq outlines the theoretical and practical framework for state spending in an Islamic economy. He argues that public expenditure is not merely a tool for economic stabilization but a moral obligation to fulfill the Maqasid al-Shari'ah (Objectives of Shari'ah).

Professor Sadeq categorizes public expenditure into three primary domains:

• Permanent Obligations: Expenditures required for defense, law and order, and the administration of justice to ensure a stable environment for economic activity.
• Social Welfare (Distributive Justice): Direct spending to alleviate poverty and provide social safety nets, primarily funded through Zakat and Sadaqat, ensuring that every citizen's basic needs (food, clothing, shelter, education, and health) are met.
• Developmental & Infrastructure Spending: Investing in public goods such as roads, transport, and utilities that benefit the community at large (Maslaha Mursala), where private investment may be insufficient.

The research emphasizes the principles of efficiency (Itqan) and avoidance of waste (Israf) in government spending. Professor Sadeq concludes that a balanced public expenditure policy in Islam promotes growth with equity, ensuring that the state functions as a benevolent guardian of public resources.

Core Concepts: Public Expenditure, Fiscal Policy, Maqasid al-Shari'ah, Social Welfare, Public Goods, Maslaha, AUB.