Abstract: This study explores the application of the principle of zakat and the government’s role in fiscal policy to address the issue of poverty. In addition to serving as one of the fundamental pillars of Islam, zakat also possesses significant potential as a mechanism for achieving a more equitable distribution of assets.. The objective of this study is to understand how the management of zakat and the policies implemented by the government can contribute to reducing poverty. The methodology chosen for this study is qualitative, employing a literature review approach using various sources such as books, articles, and journals relevant to Islamic economics, poverty, and fiscal policy. The findings of this study indicate that zakat management conducted effectively, transparently, and productively can make a positive contribution to increasing the income of the underprivileged, particularly through support for small businesses and economic empowerment. Furthermore, government involvement in the form of appropriate fiscal policies also plays a crucial role in fostering social welfare and reducing poverty levels. Therefore, zakat and government policies are interrelated in achieving economic justice and societal well-being. Keywords: zakat, fiscal policy, poverty, Islamic economics, social welfare.
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