Shafaq News- Diyala

Around 70% of infrastructure and service projects in Diyala province have stalled because of funding shortages and the continued delay in approving Iraq’s federal budget, Deputy Governor Hassan Mohammed al-Jubouri said on Sunday, warning that unpaid dues owed by Baghdad now exceed 200 billion dinars (about $130.5 million).

Al-Jubouri told Shafaq News that the financial crisis had severely disrupted projects across the province, particularly in infrastructure sectors. He said Diyala had also stopped receiving revenues from border crossings since July 2025, despite local authorities previously relying on those funds to finance part of their development projects.

The funding shortages have also affected electricity plans, including three proposed solar energy projects that remain suspended pending financing and administrative approvals, according to al-Jubouri.

Iraq continues operating without a formally approved federal budget for a second consecutive year, forcing provinces and ministries to rely on restricted emergency spending mechanisms.

Read more: Iraq enters 16th month without budget as 4,500 projects stall