The Diwan (the Register of Pensions)
It was first instituted in 636 or 638. The need arose since the war-spoils were too much to be handled informally.
It wasn’t just war spoils, but the land-tax revenue that non-Muslims generated from their lands. Jizya came into this too.
Each Muslims would get a share according to his relationship to Prophet and then by his services to the State.
Conquerors or commanders were forbidden from acquiring lands at conquered places. They were to devote themselves to Islamic cause. The lavish revenues would have blinded them to the expansion cause.
The state would provide them handsomely from the Diwan.
Diwan was distinctive from Bayt al-Mal in a sense that it included Jizya, war spoils, al-Fay, and Kharaj. Now it was formally decided who would receive what amount.
Nonetheless, the principle remained the same as that followed by the Prophet and then by Abu Bakr.
It was indeed Islam’s “socialism.”
- Military was, for the first time, arranged formally too.
- Ranks were assigned according to experience and achievement.
- Military men would receive from the Diwan.
- Islamic State had now a standing army.