The Role of Zakat in National Economic Transformation through Regional Economic Growth in South Sulawesi Province

Abstract

This study aims to determine the contribution of Zakat to economic growth in South Sulawesi Province. The economy of South Sulawesi in the second quarter grew significantly by 7.66 percent, higher than the first quarter of 2021 which recorded a contraction of 0.21 percent. The economic recovery was mainly supported by domestic consumption, which rebounded in line with the increasing mobility of the people. The regional income of South Sulawesi Province was IDR 4.19 trillion, dominated by transfer income. Regional revenue and expenditure budget expenditures were realized at IDR 3.44 trillion in the second quarter of 2021 (31.28% of the 2021 ceiling). Lower than the second quarter of 2020 which reached 41.39%? Most of the budget absorption was realized for operational expenditures (58.79% share) and capital expenditures (25.34%). The business sector, transportation, warehousing, trade, and construction are the main contributors to economic improvement in South Sulawesi Province, which experienced growth during the national economic recovery period of 73.95 percent.