Waqf financing expenditure and its impact on government debt

The Malaysian debt has been under scrutiny since the 1Malaysia Development Berhad (1MDB) scandal; placing pressure on the research for sustainable debt. The purpose of this article is to forecast the impact of waqf (Islamic pious foundation) financing expenditure on federal government debt in Malays...

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Main Authors:	Azrai Azaimi Ambrose, Azniza Hartini, Aslam, Mohamed, Hanafi, Hanira
Format:	Article
Language:	English
Published:	European Journal of Islamic Finance 2019
Subjects:	HA154 Statistical data HJ1438 Public Finance In Islam
Online Access:	http://irep.iium.edu.my/74610/ http://irep.iium.edu.my/74610/ http://irep.iium.edu.my/74610/ http://irep.iium.edu.my/74610/2/74610%20Waqf%20Financing%20Expenditure.pdf

id	iium-74610
recordtype	eprints
spelling	iium-746102020-01-09T17:57:14Z http://irep.iium.edu.my/74610/ Waqf financing expenditure and its impact on government debt Azrai Azaimi Ambrose, Azniza Hartini Aslam, Mohamed Hanafi, Hanira HA154 Statistical data HJ1438 Public Finance In Islam The Malaysian debt has been under scrutiny since the 1Malaysia Development Berhad (1MDB) scandal; placing pressure on the research for sustainable debt. The purpose of this article is to forecast the impact of waqf (Islamic pious foundation) financing expenditure on federal government debt in Malaysia. It is to ascertain whether waqf can be an alternative solution to government debt reduction. To perform this, the Neoclassical Dynamic Stochastic General Equilibrium (DSGE) model is adopted. The theoretical framework is developed by considering the history, tradition, culture, and political influence of waqf primarily in Muslim majority countries. It was also inspired by the European third sector framework. The result shows that federal government debt can be reduced when waqf finances federal government expenditure. This has several implications. For one, this study revives the cohesive government-waqf role in providing pure and mixed public goods without depending solely on government expenditure. It highlights the fact that these shared role has an impact of reducing government debt. The result also inadvertently provides evidence of a significant third sector role on public finance dynamics. As a matter of fact, this study is one of very few quantitative attempts in illustrating how waqf interacts with the economy and its impact on government debt. European Journal of Islamic Finance 2019 Article PeerReviewed application/pdf en http://irep.iium.edu.my/74610/2/74610%20Waqf%20Financing%20Expenditure.pdf Azrai Azaimi Ambrose, Azniza Hartini and Aslam, Mohamed and Hanafi, Hanira (2019) Waqf financing expenditure and its impact on government debt. European Journal of Islamic Finance, 13. pp. 1-15. ISSN 2421-2172 http://www.ojs.unito.it/index.php/EJIF/article/view/3214/pdf 10.13135/2421-2172/3214
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HA154 Statistical data HJ1438 Public Finance In Islam
spellingShingle	HA154 Statistical data HJ1438 Public Finance In Islam Azrai Azaimi Ambrose, Azniza Hartini Aslam, Mohamed Hanafi, Hanira Waqf financing expenditure and its impact on government debt
description	The Malaysian debt has been under scrutiny since the 1Malaysia Development Berhad (1MDB) scandal; placing pressure on the research for sustainable debt. The purpose of this article is to forecast the impact of waqf (Islamic pious foundation) financing expenditure on federal government debt in Malaysia. It is to ascertain whether waqf can be an alternative solution to government debt reduction. To perform this, the Neoclassical Dynamic Stochastic General Equilibrium (DSGE) model is adopted. The theoretical framework is developed by considering the history, tradition, culture, and political influence of waqf primarily in Muslim majority countries. It was also inspired by the European third sector framework. The result shows that federal government debt can be reduced when waqf finances federal government expenditure. This has several implications. For one, this study revives the cohesive government-waqf role in providing pure and mixed public goods without depending solely on government expenditure. It highlights the fact that these shared role has an impact of reducing government debt. The result also inadvertently provides evidence of a significant third sector role on public finance dynamics. As a matter of fact, this study is one of very few quantitative attempts in illustrating how waqf interacts with the economy and its impact on government debt.
format	Article
author	Azrai Azaimi Ambrose, Azniza Hartini Aslam, Mohamed Hanafi, Hanira
author_facet	Azrai Azaimi Ambrose, Azniza Hartini Aslam, Mohamed Hanafi, Hanira
author_sort	Azrai Azaimi Ambrose, Azniza Hartini
title	Waqf financing expenditure and its impact on government debt
title_short	Waqf financing expenditure and its impact on government debt
title_full	Waqf financing expenditure and its impact on government debt
title_fullStr	Waqf financing expenditure and its impact on government debt
title_full_unstemmed	Waqf financing expenditure and its impact on government debt
title_sort	waqf financing expenditure and its impact on government debt
publisher	European Journal of Islamic Finance
publishDate	2019
url	http://irep.iium.edu.my/74610/ http://irep.iium.edu.my/74610/ http://irep.iium.edu.my/74610/ http://irep.iium.edu.my/74610/2/74610%20Waqf%20Financing%20Expenditure.pdf
first_indexed	2023-09-18T21:45:37Z
last_indexed	2023-09-18T21:45:37Z
_version_	1777413430080176128

Waqf financing expenditure and its impact on government debt

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