All of the revenues of the State are collected in the Bait al-Mal, from where the various functions of the State are funded.The matters for which the funds are allocated are all decided by the view of the Khaleefah and his ijtehad.

The expenditure of the Bait al-Mal is centred around the following six categories :

1. The Bait al-Mal has a special account in which the money of zakat is collected. The eight categories of people entitled to partake of the zakat funds are supplied from this account.
2. The poor, the needy, the travellers, the debtors and jihad are funded from other sources of revenue whenever there are insufficient funds in the zakat account. When there are inadequate funds even from these other sources, the debtors are not to receive assistance. The poor, the needy, the travellers and jihad must be funded from the extra taxes collected for this purpose; and if required - to prevent them falling into corruption - they are to be funded from loans raised by the State for this purpose.
3. The Bait al-Mal must fund those people who perform certain duties or services for the state, such as employees, rulers or soldiers. If there are insufficient funds for this purpose, taxes must be collected immediately to meet their expenses, and loans should be raised if it is feared that corruption might ensue.
4. The Bait al-Mal shall fund the essential services and utilities such as the roads, mosques, hospitals and schools. If there are insufficient funds, taxes must be collected to cover their cost.
5. Non-essential services and utilities are funded by the Bait al- Mal, but when funds do not allow, these are not financed and are accordingly delayed.
6. The necessary measures for dealing with disasters, such as earthquakes and floods, must be financed by the Bait al-Mal; if there are insufficient funds, loans should be raised immediately, and will be repaid later from the taxes.

In cases where the State must resort to taking out loans to fund necessary activities, these will be primarily from its wealthy citizens. Foreign loans, which may allow the kaffir to have some kind of authority over the Muslims or control of her affairs, will not be undertaken.

It is absolutely forbidden to open banks in the Islamic State.The only bank permitted in the Islamic State is the state bank which is a department of the Bait al-Mal. It does not deal in riba (interest) and its function is to provide financial loans in accordance with the Shari‘ah rules and to facilitate financial and monetary transactions.