This paper estimates the impact of Zakat funds on the annual development plan of Bangladesh. While the Government of Bangladesh has been very eager on assuaging poverty, it has by no means looked on the institution of Zakat as a national strategy for poverty alleviation. We have shown that Zakat funds can substitute government budgetary expenditures in quantities ranging from 21 p.c of Annual Development Plan in 1983/1984 to forty three p.c of ADP in 2004/2005. The authorities can utilize this cash for other developmental or social expenditures. Zakat funds can increase the taxation potential of the government by way of the advance of productiveness, employment and output. Though Bangladesh currently falls in the class of LDC, the nation’s increasing external debt burden might transfer it to an HIPC classification. The Domar Debt Model reveals that the dynamic debt burden is 5.four{8704f81107b584f493e88decf90659238c21f561fbbecd1b3b8ed03ce440a1aa} of GDP.

Each service account might …