The Differential Matrix of Islamic Finance Instruments and Their Role in Financing Budget Deficits

Islamic financial instruments, based on a participation economy and utilizing a differential matrix for financing budget deficits, enable the selection of the most suitable methods for funding individual or combined budgetary shortfalls. When a state employs the Salam instrument, it fosters economic growth by leveraging human and natural resources across various sectors and activities while addressing all societal needs. Similarly, Ijarahsukuk ensure medium- to long-term financing, serving as an optimal alternative to public debt bonds for funding the acquisition of fixed assets for productive and service-oriented government projects.