Q.4 Explain baitulmal management during the period of Caliph Umar Ibn Abdul Aziz. Discuss its impacts. 2020

Baitulmal is an Islamic financial institution responsible for the collection, management and distribution of zakat, sadaqah, and other funds for the needy and deserving members of society. During the period of Caliph Umar Ibn Abdul Aziz, who is widely known for his just and fair rule, significant changes were made to the management of Baitulmal, which had a positive impact on the society.

Caliph Umar Ibn Abdul Aziz was a reformer and believed in accountability, transparency, and efficient management of the resources of the state. Under his leadership, Baitulmal was reorganized and managed in a more efficient and effective manner, which had several impacts:

1. Improved Financial Management: Caliph Umar Ibn Abdul Aziz implemented a new financial management system that ensured transparency and accountability in the collection and distribution of funds. This included the appointment of honest and competent officials to manage Baitulmal, ensuring that funds were collected and distributed fairly and transparently.
2. Increased Zakat Collection: Caliph Umar Ibn Abdul Aziz increased the collection of zakat and other charitable donations, which helped to provide much-needed relief to the poor and needy. This was achieved by establishing clear rules and regulations governing zakat collection and distribution, and by ensuring that officials responsible for the management of Baitulmal were efficient and honest.
3. Improved Distribution of Funds: Under the new management system, the distribution of funds was improved, and deserving members of society were given priority. This included the provision of financial assistance to the poor, widows, orphans, and the disabled. The Baitulmal management also ensured that those who were not eligible for zakat did not receive it, which helped to prevent misuse of funds.
4. Social Welfare: The efficient management of Baitulmal helped to promote social welfare, and the provision of financial assistance to the poor and needy helped to reduce poverty and inequality in society.

In conclusion, the reorganization and efficient management of Baitulmal during the period of Caliph Umar Ibn Abdul Aziz had a significant positive impact on society. It helped to ensure that funds were collected and distributed in a transparent and accountable manner, and that the poor and needy were given the financial assistance they needed. The improved management of Baitulmal also helped to promote social welfare and reduce poverty and inequality in society.