Question
If a government offers people to deposit their savings to it and with a view of welfare of its citizens making use of financial manipulation without any compulsion and of its own will, it returns the amount over and above the original then still will it be counted as riba transaction?
Answer
There is a key definition to keep in mind when considering the matter of riba (interest/usury). By its very connotation, riba is an accrual on a loan at a predetermined rate. If the government has framed in this way then those who receive the additional money are receiving interest, which is obviously forbidden in Islam. However, if the government is asking that the people of the state invest in the state to help out and if the outcome is well that they will be paid their due and an additional amount (depending on the individual’s investment) then there is no harm in this.
I hope this helps.
God knows best.