What were the financial reforms of Hazrat Umar?

 

This is Article about financial reforms of Hazrat Umar. Here you will read all financial reforms which made hazrat Umar. In the era of Hazrat Umar, he gave attention to the financial reforms.

What were the financial reforms of Hazrat Umar?

Hazrat Umar was the first caliph who made a good arrangement of wealth in the Islamic Empire and made financial reforms.

You have established a department of fixed assets.

Hazrat Umar had a central Bait-ul-Mal built in Medina and Bait-ul-Mal was built in every province.

You built strong walls for Baitul Mal.

Bait-ul-Mal was built during the reign of Hazrat Umar, but nothing was stored in it.

You have to calculate the income and expenditure principle.

Honest people were chosen to keep the accounts of Baitul Maal.

The officer of Dar al-Khalfa or Bait al-Mal was Hazrat Abdullah bin Arqam.

Abdullah bin Masud of Kufa and Khalid bin Haris of Isfahan were among others.

The arrangement of Bait-ul-Mal was that the revenue of each province came to Bait-ul-Mal.

What was saved from the expenditure of the government here was given to the Central Baitul-Mal.

Expenditure of Bait-ul-Mal

In financial reforms the first step was to settle expenditure of Bait Ul Maal.

The income of Bait-ul-Mal was usually spent on these matters.

Salaries of Government Servants

Ist financial reform is

Military spending

Second Financial reform is

Public Scholarships

3rd financial reform is 

General welfare

4rth financial reform is

Construction of government buildings

5th financial reform is

Maintenance of prisoners

6th financial reforms is

Purchase of war supplies

Bait ul Mal Source of income

1. Zakat

Zakat was collected only from Muslims and sahib-e-nisab Muslims had to contribute 40 percent of their wealth.

Zakat, which included silver, gold, cash, coins, cattle, and merchandise, was a daily income. Before Hazrat Ummar, there was no zakat on horses.

Because there was no trade in horses, when they started to be traded in your era, Zakat was also imposed on them.

 2. Usher

Ushar was also taken from the Muslims. It is the tax paid by the Muslims on the agricultural land.

The tenth share on rainfed and canal land, while twenty shares had to be given to the government on the land that was irrigated by mines.

The method of tithing was common during the time of Hazrat Muhammad and Hazrat Abu Bakr, but Hazrat Umar gave it more importance.

The Usher system was also imposed on the people of conquered countries who had accepted Islam.

3. Ashur

Muslim traders used to trade with neighboring countries.

 So the governments there used to collect a tenth of the capital tax from them.

Seeing this, Hazrat Amr ordered that the same amount of tax should be collected from the traders of foreign countries. Its rate was two hundred dirhams.

Then, gradually, taxes were taken from the country's slaves and Muslims.

Dhimmis were taxed at 5% and Muslims at 2.5%.

4. Tribute

The money or grain received from non-Muslims from the produce of the land.

The amount of tribute was not fixed, but the rate of tribute was fixed according to the sensibilities of the land.

And tribute was collected from the land that remained with the non-Muslim cultivators after victory.

5. Jizya

In the Islamic government, the non-Muslim people were not assigned to military service, but even so, they were responsible for their protection.

In return, they had to pay some amount annually. It was called jizya.

It was used only for those who were happy and ready to take up the sword.

The rich, the elderly, monks, women, children and poor people did not pay jizya, the rate of jizya was not fixed.

It used to increase or decrease according to the senses and could also be forgiven.

And the Jizya was not collected from the non-Muslims who joined the army. 

6. Wealth and booty

All the things of the enemies that came into the hands of the Muslim Mujahideen were called booty.

The fifth part of it used to be stored in Baitul Maal.

The rest was distributed among the Mujahideen.

7. Khalsa

Such land, which was government property, was given to cultivators for settlement, and the revenue earned from it went to the government bait al maal.

 

Hazrat Amr had all the lands inspected and the ore protection system was established, feudalism was abolished.

All Muslims were prevented from taking land. Aeration and settlement projects were made for uninhabited lands.

These were financial reforms which made by hazrat Umar.