Abstract

Literally, the words “Bayt al-Mal” is a combination of two nouns, namely, “Bayt” which means House and “al-Mal” which means the wealth. The meaning of the compound so constructed is: the house of the wealth. The first noun is called the governing noun (اسم مضاف) while the second noun is called the governed noun (مضاف الیہ اسم). The construction so made is called Governance Compound (مرکب اضافی). This combination shows inter-relationship or inter-connection. The one who possesses a thing and the other is the thing possessed. The one who owns a thing and the other is the thing owned. Thus we have many such compounds in the Holy Qur’an and Ahadith. This institution was thus existing since the period of the Messenger of Allah (صلی اللہ علیہ و آلہ وسلم). In the formation stage of Islam, Spending in the way of Allah or Spending for the Pleasure of Allah started and expending was quick and spontaneous. Whatever goods or amount of wealth in any form was subscribed or donated or was received from any source the same was piled up in the compound of the Masjid Nabawi and then distributed among the deserving and entitled needy persons.The same practice prevailed during the period of Hadrat Abu Bakr Siddiq (رضی اللہ تعالی عنہ*). Regular Baytu’l-Mal/بیت المال was established during the Caliphate of Hadrat `Umar Faruq (رضی اللہ تعالی عنہ*).Hadrat Bilal (رضی اللہ تعالی عنہ*) and his colleagues requested Hadrat 'Umar Faruq (رضی اللہ تعالی عنہ*) to distribute the booty received from `Iraq and Syria as the booty received from other countries was distributed. In the like manner the lands be distributed among those who have conquered them. Hadrat 'Umar Faruq (رضی اللہ تعالی عنہ*) turned down the said request putting forward the reason that Allah Almighty has kept the share of those Muslims who will come after those conquerors. The wisdom behind this (administrative or executive) decision of Hadrat 'Umar Faruq (رضی اللہ تعالی عنہ*) was that general ownership and individual ownership are two distinct affairs and the objective of Amwal and Jagirs is to preserve the general national interest. When in 20 AH the institution or Department of Diwan was also included in it a new meaning was given to the term Baytu’l-Mal/بیت المال . It was the concept of an official exchequer. Previously, this term was used for a safe place where goods and properties were temporarily kept to distribute among the individual owners or persons entitled to receive them. When wealth collected was much more and there was no immediate item of expenditure the question of the income which was termed as the wealth of Allah Almighty was to be preserved at one central place which needed space and administration both for collection, distribution and taking care of the wealth so accumulated at a particular place and thus it took the form of an institution and was given the name of Baytul-Mal which was a national exchequer of a Muslim State or a State Bank of an Islamic Empire.

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