Bali's Central Government Transfer Funds Drop 7.06% in First Half of 2026

The central government, through the Ministry of Finance, has disbursed Rp5.61 trillion in Transfer to Regions (TKD) funds for Bali Province during the first semester of 2026, a 7.06% decrease compared to the Rp6.04 trillion recorded in the same period of 2025. The decline is due to this year’s allocation ceiling being lower than the previous year’s, according to the Head of the Regional Office of the Directorate General of Treasury, Supendi, in Denpasar, Bali, on Wednesday. A breakdown of the five allocation categories shows three experienced significant declines of over 50%. Revenue Sharing Funds (DBH) transferred amounted to Rp96.55 billion, a 63.95% drop from Rp267.80 billion last year. The realisation of the Physical Special Allocation Fund (DAK) reached only Rp5.24 billion, down 62.97% from Rp14.15 billion in the same period of 2025. Village Funds also fell 51.76% to Rp203.16 billion from Rp421.12 billion. Over the six months from January to June 2026, Village Funds were distributed in two stages: Rp121.69 billion to 636 villages in the first stage and Rp81.47 billion to 554 villages in the second. Conversely, the General Allocation Fund (DAU) Block Grant, which gives local governments flexibility in spending, rose 0.51% to Rp3.97 trillion, and the Non-Physical DAK increased by 5.37% to Rp1.34 trillion. There was no allocation for fiscal incentives in 2026, unlike in the first half of 2025 when Rp116.88 billion was disbursed. Nationally, the TKD allocation ceiling for 2026 is Rp693 trillion, down from Rp848.52 trillion in 2025. Despite the reduced transfers, central government spending in Bali reached nearly Rp5 trillion during the first half of 2026, a 20.97% increase compared to the same period in 2025.