<![CDATA[Historically, the Baitul Mal during the Rashidun Caliphate operated as a sovereign, dynamic state treasury. Over time, however, it gradually lost its comprehensive role in managing broad state revenue sources, leading to its institutional marginalization in the contemporary era. This study critically evaluates the historical deconstruction and marginalization of the Baitul Mal's fiscal functions, utilizing the contemporary Baitul Mal of Aceh (BMA) as an illustrative case study. Employing a qualitative historical-comparative method with a systematic narrative review design, this paper reveals that the weakening of the Baitul Mal’s fiscal autonomy was driven by three fundamental historical shifts: 1) treasury centralization during the classical Ottoman era (14th–16th centuries); 2) European-style financial secularization during the Tanzimât reform era (1839–1876); and 3) the post-World War I absolute dichotomy between religious authority and public administration. Extending this trajectory to the contemporary era, the integration of BMA into modern governance demonstrates a continuous negotiation between state financial compliance and Sharia distributive principles. While early structural integration into the state treasury created administrative rigidities, subsequent legislative adaptations, specifically Qanun Aceh No. 3 of 2021, introduced targeted regulatory flexibilities. Furthermore, the study highlights that enduring socio-cultural preferences for local proximity maintain informal wealth redistribution channels as a vital parallel force alongside formal state institutions, establishing a complex dual-track ecosystem in modern Islamic public finance]]>
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