Unpaid federal funds deepen strain on Diyala health system
Shafaq News – Diyala
Diyala’s health system is facing a risk of collapse as Iraq's federal operating budgets remain undisbursed, threatening patient care across the province, a member of the Provincial Council said.
Speaking at a press conference on Tuesday, Ouss Al-Mahdawi warned that delays in disbursing funds have placed the Diyala Health Directorate under acute financial strain, with accumulated debts exceeding 30 billion Iraqi dinars (about $20.5M) and some hospitals owing more than 400 million dinars (around $274,000) each.
The province’s allocation for the current year stands at roughly 650 billion dinars (about $445 million), none of which has been disbursed so far, he added, urging the government to intervene immediately to prevent further deterioration in health and basic services.
Last week, Ahmed Al-Khafaji, head of the Health Committee in the Dhi Qar Provincial Council, also cautioned that delays in approving Iraq’s federal budget tables have pushed Dhi Qar’s health sector into a “severe” funding crisis.
Read more: Iraq’s healthcare system nears collapse: Doctors leave, hospitals overflow
Notably, Iraq is approaching 2026 without finalized budget tables for 2025, while the fiscal deficit expanded to 17.7 trillion dinars ($13.5B) by September, as rising expenditures, stagnant revenues, and an unresolved political impasse tightened spending nationwide.
Caretaker Prime Minister Mohammed Shia Al-Sudani has maintained that the three-year federal budget framework introduced by his government provides “stability in expenditure,” while cautioning that future budgets will continue to face structural pressures linked to the size of the state and long-standing financial obligations.
Read more: Deficit soars, projects freeze: Iraq heads into 2026 with NO BUDGET
