Imron Mawardi and Tika Widiastuti and Debrina Farrah Anova and Muhammad Ubaidillah Al Mustofa and Dewie Saktia Ardiantono and Taqiyah Dinda Insani (2019) Public Debt As a Cource Of Financing For Government Expenditures in The Perspective of Islamic Scholars. Humanities & Social Sciences Reviews, 7 (4). pp. 285-290. ISSN 2395-6518

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Abstract

Purpose of the study: This study aims to examine foreign debt as a source of financing for economic development. This research is expected to provide (1) an overview of debt as a source of funding for state projects, (2) investigate its impacts and (3) offer additional knowledge of its Islamic perspective. Methodology: This research is a qualitative study using the study literature approach. This research is conducted by analysing books, literature, journals, and magazines with themes related to the focus of the discussion on this study. It is expected that the method used can provide insight, general knowledge, and develop the view of Islam in relation to foreign debt. Main Findings: The government has to ensure that the state has the ability to pay off its obligations in the future; guarantee that loans have to be free from interest; prioritize taking loans from internal sources rather than external sources. In Addition, debts are not intended for deferred needs and not taking loans that exceed their needs. Applications of this study: basically the results of this study can be applied to any country that considers the use of public debt, like other Islamic systems. Novelty/Originality of this study:This research is conceptual research in an Islamic perspective. This study successfully examined comprehensively related to the public debt with the Islamic approach.

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