Bayt al-mal was the department that dealt with the revenues and all other economical matters of the state. In the time of
Muhammad, there was no permanent Bait-ul-Mal or public treasury. Whatever revenues or other amounts were received were distributed immediately. The last receipt during the life of the Prophet was a tribute from Bahrain amounting to 800000 dirham which was distributed in just one sitting. There were no salaries to be paid, and there was no state expenditure. Hence the need for the treasury at public level was not felt. In the time of
Abu Bakr as well there was no treasury. Abu Bakr earmarked a house where all money was kept on receipt. As all money was distributed immediately the treasury generally remained locked up. At the time of the death of Abu Bakr, there was only one
dirham in the public treasury. According to Rahman, the word
bayt mal al-muslimin (or
bayt mal-Allah) referred originally to the building in early Muslim history where war spoils and other public properties of the caliphate were stored and re-distributed to the community, but over time the term evolved to refer to the societal institution owning such public properties of the Muslims, and hence encompasses the authority in control of the state's public revenue and expenditures. in
Damascus During the
Rashidun Caliphate, various welfare programs were introduced by Caliph
Umar. Umar himself lived "a simple life and detached himself from any of the worldly luxuries," like how he often wore "worn-out shoes and was usually clad in patched-up garments," or how he would sleep "on the bare floor of the
mosque." Limitations on wealth were also set for governors and officials, who would often be "dismissed if they showed any outward signs of pride or wealth which might distinguish them from the people." This was an early attempt at erasing "class distinctions which might inevitably lead to conflict." Umar also made sure that the public treasury was not wasted on "unnecessary luxuries" as he believed that "the money would be better spent if it went towards the welfare of the people rather than towards lifeless bricks."
Tahir ibn Husayn, governor of the
Khurasan province of the Abbasid Caliphate, states in a letter to his son that pensions from the treasury should be provided to the blind, to look after the poor and destitute in general, to make sure not to overlook victims of oppression who are unable to complain and are ignorant of how to claim their
rights, and that pensions should be assigned to victims of calamities and the widows and orphans they leave behind. The "ideal city" described by the
Islamic philosophers,
Al-Farabi and
Avicenna, also assigns funds to the disabled. When communities were stricken by famine, rulers would often support them though measures such as the remission of taxes, importation of food, and charitable payments, ensuring that everyone had enough to eat. However, private charity through the
Waqf trust institution often played a greater role in the alleviation of famines than government measures did. From the 9th century, funds from the treasury were also used towards the
Waqf (charitable trusts) for the purpose of building and supporting public institutions, often
Madrassah educational institutions and
Bimaristan hospitals. ==References==