This study examines the misorientation of Village Fund allocation that is suboptimal for the creative economy and the obstacles to youth participation in Sukorejo Village. The novelty of the research lies in the use of the Maqashid Sharia perspective as an instrument to evaluate village fiscal policy. This study aims to analyze the factors causing budget shifts, barriers to youth participation, as well as their impact on the sustainability of artisan businesses and the empowerment of the village's creative economy from the Maqashid Sharia perspective. A qualitative method was applied through the analysis of the 2024 Village Budget (APBDes) documents, in-depth interviews with village treasurers and artisans, and mini-surveys of productive-age youth. The results reveal that the APBDes allocation is dominated by government operational expenditures (41.25%), which triggers the diversion of empowerment funds to general programs due to low youth interest. From the perspective of Maqashid Sharia, this policy is considered to neglect the principles of hifdz al-mal and hifdz al-nasl, thereby triggering stagnation in artisans' businesses and disrupting the chain of knowledge. This study recommends budget restructuring and collaborative synergy between the government, youth, and artisans to support a sustainable creative economy.
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