A CONCEPT FOR FUNDING UNIVERSAL BASIC INCOME THROUGH A “NATIONAL WAQF” SCHEME

Abstract

Purpose ― Modern governments are constantly seeking innovative ways of funding welfare programs for the wellbeing of their citizens. These methods may range from traditional welfare schemes to radical initiatives. One of the ideas that is gaining traction to this measure is universal basic income (UBI), which basically refers to a monthly payment that is given to all citizens, regardless of their income levels, economic and employment status. However, the main difficulty in the implementation of UBI is its funding. At the same time, the traditional Islamic concept of waqf (Islamic endowment) is also a sector that is underutilized, with a great potential to provide welfare for citizens. This paper seeks to provide a solution to both the funding of UBI and revitalization of the waqf sector.

Design/methodology/approach ― This paper employs library research to explore if waqf can be used to fund UBI towards the objective of alleviating poverty, improving standards of living and reducing income inequality.

Findings ― This paper provides a conceptual Waqf-UBI solution that seeks to improve the waqf sector and concurrently enhance the well-being of citizens. 

Originality ― This paper is the first of its kind to propose funding of UBI through waqf.

Paper type Conceptual paper