Edgar Filing: TEMPLETON GLOBAL INCOME FUND

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05459

TEMPLETON GLOBAL INCOME FUND
(Exact name of registrant as specified in charter)

500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091
(Address of principal executive offices) (Zip code)

CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
(Name and address of agent for service)

Registrant's telephone number, including area code: (954) 527-7500
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Date of fiscal year end: 8/31
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Date of reporting period: 2/28/07
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ITEM 1. REPORTS TO STOCKHOLDERS.

[GRAPHIC OMITTED]

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FEBRUARY 28, 2007
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SEMIANNUAL REPORT INCOME
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TEMPLETON
GLOBAL INCOME FUND

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[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS

Franklin o TEMPLETON o Mutual Series

Franklin Templeton Investments

GAIN FROM OUR PERSPECTIVE(R)

Franklin Templeton's distinct multi-manager
structure combines the specialized expertise of
three world-class investment management groups--
Franklin, Templeton and Mutual Series.

SPECIALIZED EXPERTISE Each of our portfolio management groups operates
autonomously, relying on its own research and
staying true to the unique investment disciplines
that underlie its success.

FRANKLIN. Founded in 1947, Franklin is a
recognized leader in fixed income investing and
also brings expertise in growth-and value-style
U.S. equity investing.

TEMPLETON. Founded in 1940, Templeton pioneered
international investing and, in 1954, launched
what has become the industry's oldest global
fund. Today, with offices in over 25 countries,
Templeton offers investors a truly global
perspective.

MUTUAL SERIES. Founded in 1949, Mutual Series is
dedicated to a unique style of value investing,
searching aggressively for opportunity among what
it believes are undervalued stocks, as well as
arbitrage situations and distressed securities.

TRUE DIVERSIFICATION Because our management groups work independently
and adhere to different investment approaches,
Franklin, Templeton and Mutual Series funds
typically have distinct portfolios. That's why
our funds can be used to build truly diversified
allocation plans covering every major asset
class.

RELIABILITY YOU CAN TRUST At Franklin Templeton Investments, we seek to
consistently provide investors with exceptional
risk-adjusted returns over the long term, as well
as the reliable, accurate and personal service
that has helped us become one of the most trusted
names in financial services.

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MUTUAL FUNDS | RETIREMENT PLANS | 529 COLLEGE SAVINGS PLANS | SEPARATE ACCOUNTS
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[GRAPHIC OMITTED]

Not part of the semiannual report

Contents

SEMIANNUAL REPORT

Templeton Global Income Fund .............................................. 1

Performance Summary ....................................................... 7

Important Notice to Shareholders .......................................... 8

Financial Highlights and Statement of Investments ......................... 9

Financial Statements ...................................................... 15

Notes to Financial Statements ............................................. 18

Annual Meeting of Shareholders ............................................ 26

Dividend Reinvestment and Cash Purchase Plan .............................. 27

Shareholder Information ................................................... 29

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Semiannual Report

Templeton Global Income Fund

YOUR FUND'S GOALS AND MAIN INVESTMENTS: Templeton Global Income Fund seeks high,
current income, with a secondary goal of capital appreciation. Under normal
market conditions, the Fund invests at least 80% of its net assets in
income-producing securities, including debt securities of U.S. and foreign
issuers, including emerging markets.

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PORTFOLIO BREAKDOWN
Based on Total Net Assets as of 2/28/07

[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]

Government Bonds .................................. 87.5%
Short-Term Investments & Other Net Assets ......... 12.5%

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Dear Shareholder:

We are pleased to bring you Templeton Global Income Fund's semiannual report for
the period ended February 28, 2007.

THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL AMOUNT, AND NAMES OF ALL
PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE
SOI BEGINS ON PAGE 10.

Semiannual Report | 1

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WHAT IS A CURRENT ACCOUNT?
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A current account is that part of the balance of payments where all of one
country's international transactions in goods and services are recorded.
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WHAT IS BALANCE OF PAYMENTS?
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Balance of payments is a record of all of a country's exports and imports of
goods and services, borrowing and lending with the rest of the world during a
particular time period. It helps a country evaluate its competitive strengths
and weaknesses and forecast the strength of its currency.
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PERFORMANCE OVERVIEW

For the six months under review, Templeton Global Income Fund posted cumulative
total returns of +8.26% based on market price and +5.86% based on net asset
value. The Fund outperformed the J.P. Morgan (JPM) Global Government Bond Index
(GGBI), which posted cumulative total returns of +1.40% in local currency terms
and +2.46% in U.S. dollar terms for the same period. 1 You can find the Fund's
long-term performance data in the Performance Summary on page 7.

ECONOMIC AND MARKET OVERVIEW

For the six months under review, global economies seemed resilient in the face
of moderating U.S. economic conditions. In general, lower energy and commodity
prices curbed inflation despite improved global growth rates and strong labor
markets. Oil prices fell 19% from a high of $77 per barrel in July to about $62
per barrel at period-end, alleviating some of the pressure on oil importing
countries. In the U.S., the trade deficit narrowed to $59 billion by January
2007 from $69 billion in August 2006. However, the magnitude of the adjustment
was small compared with the overall size of the current account deficit, which
was 5.8% of U.S. gross domestic product (GDP) in the fourth quarter of 2006, and
continued to be heavily dependent on foreign inflows for financing. 2 Lower oil
prices and an improved labor market also supported consumption growth,
offsetting some of the weakness in the U.S. housing market. For 2006, U.S. GDP
grew 3.3%, which was in line with its historical average. Underlying inflation
pressures in the U.S. remained relatively high and the U.S. Federal Reserve
Board left the federal funds target rate unchanged at 5.25% throughout the
reporting period.

In Japan, structural economic improvement was most evident in the upward
inflation trend, which in 2006, turned positive on a yearly basis for the first
time since 1998. The Bank of Japan raised interest rates for the second time
since ending its zero interest rate policy last year. Although Japan's GDP
growth rate has been relatively volatile, the economy grew at a
faster-than-average pace of 2.3% in 2006, increasingly supported by a revival in
private consumption. 3 Other Asian economies also remained strong in the fourth
quarter of 2006, with growth in Singapore of 7.9%, Indonesia 6.1% and

1. Source: J.P. Morgan. The JPM GGBI tracks total returns for liquid,
fixed-rate, domestic government bonds with maturities greater than one
year issued by developed countries globally. The index is unmanaged and
includes reinvested interest. One cannot invest directly in an index, nor
is an index representative of the Fund's portfolio.

2. Source: U.S. Bureau of Economic Analysis.

3. Source: Economic and Social Research Institute (Japan).

2 | Semiannual Report

Malaysia 5.7%. 4 Increased intra-regional trade remained an important growth
driver, and China continued to be an important source of demand for Asia's
exports of goods and services. While China allowed limited currency
appreciation, it continued to accumulate international reserves that exceeded
$1 trillion in the reporting period, adding $162.9 billion during the last
four months of 2006. 5 The yuan rose 2.7% for the six months under review. 6

Supported by investment growth and external demand from Asia and other parts
of Europe, Euro-zone economic growth notably accelerated, increasing 2.7% in
2006 from 1.5% in 2005. 7 Private consumption trends were more dynamic than in
prior years, but weak real wage growth remained an impediment to stronger
consumer spending. Labor markets improved and the unemployment rate dropped
from 8.8% in early 2005 to 7.5% by the end of 2006. 7 The European Central
Bank tightened its monetary policy, hiking interest rates 50 basis points (100
basis points equal one percentage point) to 3.50%. 7 Among non-euro European
countries, economic growth was even better. In the fourth quarter of 2006, GDP
growth in Slovakia was 9.6%, Poland 6.4%, Sweden 4.9% and Norway 4.5%. 7
Growth among these countries was broad based while inflation remained low,
supported by lower energy prices and improved productivity growth. Despite low
inflation, rapidly narrowing excess capacity led Norway and Sweden to hike
rates 75 basis points each.

INVESTMENT STRATEGY

We invest selectively in bonds around the world to generate income for the Fund,
seeking opportunities while monitoring changes in interest rates, currency
exchange rates and credit risks.

MANAGER'S DISCUSSION

The Fund's total return was influenced by various factors, including interest
rate developments, currency movements and exposure to sovereign debt markets.

4. Sources: Singapore Department of Statistics; BPS (Statistics Indonesia);
Department of Statistics Malaysia.

5. Source: The People's Bank of China.

6. Source: Exshare via Compustat.

7. Source: Eurostat.

8. Sources: Statistical Office of the Slovak Republic; Statistics Sweden;
Statistics Norway.

Semiannual Report | 3

GEOGRAPHIC BREAKDOWN
Based on Total Net Assets as of 2/28/07

[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]

Asia 36.6%
Americas 26.9%
Non-EMU Europe 23.9%
EMU Members* 4.7%
Middle East & Africa 4.0%
Supranationals** 3.0%
Other Assets, less Liabilities 0.9%

* The Fund's EMU investments were in Germany.

** The Fund's supranational investments were denominated in the Japanese yen
and New Zealand dollar.

INTEREST RATE STRATEGY

During the six months under review, the overall duration of the Fund's
portfolio remained relatively short amid a backdrop of strong global growth
rates and inflation and valuation concerns. However, we continued to find
select interest rate opportunities determined by country-specific factors. For
example, Indonesian bond market strength was driven primarily by a 250 basis
point interest rate reduction during the period. The Fund benefited from its
investments in domestic Indonesian bonds, which rose +13.19% in local currency
terms, as measured by the HSBC Asian Local Bond Index (ALBI). 9 In Brazil,
improving inflation and credit fundamentals allowed the central bank to reduce
interest rates 125 basis points and supported local currency returns of
+20.32% in the JPM Global Bond Index-Emerging Markets (GBI-EM). 10 Brazilian
inflation declined from 8% in mid-2005 to 3% at period-end. 11 Brazilian real
interest rates were high over the period and disinflation allowed the central
bank to lower nominal rates to boost relatively slow aggregate growth.
Consistent with our investment strategy, the Fund can invest across a wide
spectrum of local bond markets and protect against currency risk.

CURRENCY STRATEGY

Global imbalances resulted in strong relative consumption growth and a large
U.S. current account deficit, as well as low domestic demand and current
account surpluses in Asia. Based on our view that these imbalances could
gradually unwind over the medium term, we continued to position the portfolio
for a weak U.S. dollar through a basket of Asian currencies. Over the period,
the yen has taken on a greater role in the Fund's currency exposure and is now
the single largest currency represented among a diversified portfolio despite
an underweighted allocation compared with the Citigroup World Government Bond
Index (WGBI) Index. 12 Japan's relatively low interest rate environment worked
against the yen as it weakened 1.01% against the U.S. dollar during the review
period. 6 However, we continued to find yen valuations attractive and see room
for the difference between Japan's interest rates and those of other major
economies to narrow as the nation's structural

9. Source: Standard & Poor's Micropal. The HSBC ALBI tracks total return
performance of a bond portfolio, which consists of local
currency-denominated, high quality and liquid bonds in Asia ex-Japan.
Local bond market returns are from country subindexes of the HSBC ALBI.

10. Source: J.P. Morgan. The JPM GBI-EM tracks total returns for liquid,
fixed-rate, domestic currency emerging market government bonds. Local bond
market returns are from the country subindexes of the JPM GBI-EM.

11. Source: IBGE (Brazilian Institute of Geography and Statistics).

12. Source: Citigroup. The Citigroup WGBI is market capitalization weighted
and tracks total returns of government bonds in 22 countries globally.

4 | Semiannual Report

improvements continue to take hold. The Fund also maintained diversified
exposure across several other Asian currencies. Among those other currencies,
the Thai baht rose 10.72% against the U.S. dollar, despite investor uncertainty
over capital controls instituted under the new government that came to power by
a coup in the fall of 2006. 6 Additionally, the Malaysian ringgit appreciated
5.08% against the U.S. dollar and the South Korean won rose 2.10%. 6

European currencies had mixed performance over the period. Although the Fund
had limited direct exposure to the euro, it was positioned to benefit from
euro appreciation through its investments in non-euro European currencies,
which are sensitive to euro movements. This strategy worked well for the Fund
as central European currencies outperformed the euro's 3.20% rise during the
review period. 6 The Slovak koruna appreciated 12.95% as the nation's
prospects improved for joining the European Union (EU) in 2009. 6
Additionally, Romania's successful entrance into the EU at the beginning of
2007 helped boost its currency 7.12%. 6 The Fund benefited from its exposure
to the Polish zloty, which appreciated 4.14%, while Scandinavian currencies
lagged, with the Norwegian krone and Swedish krona rising 3.09% and 2.63%. 6

The U.S. dollar rose 0.34% against its major trading partners, largely due to
5.36% depreciation of the Canadian dollar, which detracted from the Fund's
relative performance. 6 However, we continued to find the Canadian dollar
attractive given its low valuation and Canada's economic strength. For
example, Canada's unemployment rate dropped to a 30-year low of 6.1% in
February 2007, and it is the only major developed nation to run both a fiscal
surplus and a current account surplus. 13

GLOBAL SOVEREIGN DEBT STRATEGY

The Fund also invested in investment-grade and sub investment-grade sovereign
debt that as an asset class typically compensates for greater credit risk by
offering higher yields relative to U.S. and European benchmark treasury
curves. Despite rising U.S. interest rates, U.S. dollar-denominated emerging
market debt generated a strong six-month return of +5.88% as measured by the
JPM Emerging Markets Bond Index Global (EMBIG). 14 Sovereign interest rate
spreads declined from 197 basis points at the beginning of the reporting
period to 187 basis points by period-end. 15 Regionally, Latin American
sovereign debt

13. Source: Statistics Canada.

14. Source: J.P. Morgan. The JPM EMBIG tracks total returns for U.S.
dollar-denominated debt instruments issued by emerging market sovereign
and quasi-sovereign entities: Brady bonds, loans and Eurobonds.

15. Source: J.P. Morgan Government Bond Index Monitor.

CURRENCY BREAKDOWN*
Based on Total Net Assets as of 2/28/07

[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]

Japanese Yen 13.7%
South Korean Won 11.8%
Swedish Krona 9.4%
Indonesian Rupiah 8.5%
Polish Zloty 8.1%
Thailand Baht 6.9%
Canadian Dollar 6.1%
Brazilian Real 4.9%
Norwegian Krone 4.7%
Indian Rupee 4.2%
Peruvian Nuevo Sol 3.7%
Australian Dollar 3.4%
Egyptian Pound 3.0%
Icelandic Krona 2.6%
Malaysian Ringgit 2.4%
Kazakhstan Tenge 2.1%
Other 4.5%

Semiannual Report | 5

returned +6.20%, Asian +7.22%, central and eastern European +4.77%, Middle
Eastern +4.29% and African +4.18%. 14

Thank you for your continued participation in Templeton Global Income Fund. We
look forward to serving your future investment needs.

Sincerely,

[PHOTO OMITTED]

/s/ Michael Hasenstab

Michael Hasenstab, Ph.D.
Portfolio Manager
Templeton Global Income Fund

THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS
AS OF FEBRUARY 28, 2007, THE END OF THE REPORTING PERIOD. THE WAY WE IMPLEMENT
OUR MAIN INVESTMENT STRATEGIES AND THE RESULTING PORTFOLIO HOLDINGS MAY CHANGE
DEPENDING ON FACTORS SUCH AS MARKET AND ECONOMIC CONDITIONS. THESE OPINIONS MAY
NOT BE RELIED UPON AS INVESTMENT ADVICE OR AN OFFER FOR A PARTICULAR SECURITY.
THE INFORMATION IS NOT A COMPLETE ANALYSIS OF EVERY ASPECT OF ANY MARKET,
COUNTRY, INDUSTRY, SECURITY OR THE FUND. STATEMENTS OF FACT ARE FROM SOURCES
CONSIDERED RELIABLE, BUT THE INVESTMENT MANAGER MAKES NO REPRESENTATION OR
WARRANTY AS TO THEIR COMPLETENESS OR ACCURACY. ALTHOUGH HISTORICAL PERFORMANCE
IS NO GUARANTEE OF FUTURE RESULTS, THESE INSIGHTS MAY HELP YOU UNDERSTAND OUR
INVESTMENT MANAGEMENT PHILOSOPHY.

6 | Semiannual Report

Performance Summary as of 2/28/07

Your dividend income will vary depending on dividends or interest paid by
securities in the Fund's portfolio, adjusted for operating expenses. Capital
gain distributions are net profits realized from the sale of portfolio
securities. Total return reflects reinvestment of the Fund's dividends and
capital gain distributions, if any, and any unrealized gains or losses. Total
returns do not reflect any sales charges paid at inception or brokerage
commissions paid on secondary market purchases. The performance table does not
reflect any taxes that a shareholder would pay on Fund dividends, capital gain
distributions, if any, or any realized gains on the sale of Fund shares.

PRICE AND DISTRIBUTION INFORMATION

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SYMBOL: GIM CHANGE 2/28/07 8/31/06
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Net Asset Value (NAV) -$0.11 $8.82 $8.93
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Market Price (NYSE) +$0.08 $9.23 $9.15
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DISTRIBUTIONS (9/1/06-2/28/07)
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Dividend Income $0.6466
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PERFORMANCE

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6-MONTH 1-YEAR 5-YEAR 10-YEAR
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Cumulative Total Return 1
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Based on change in NAV 2 +5.86% +10.56% +84.20% +126.28%
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Based on change in market price 3 +8.26% +19.13% +101.63% +181.58%
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Average Annual Total Return 1
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Based on change in NAV 2 +5.86% +10.56% +13.00% +8.51%
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Based on change in market price 3 +8.26% +19.13% +15.06% +10.91%
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PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN.

ENDNOTES

SPECIAL RISKS ARE ASSOCIATED WITH FOREIGN INVESTING, INCLUDING CURRENCY
VOLATILITY, ECONOMIC INSTABILITY AND SOCIAL AND POLITICAL DEVELOPMENTS OF
COUNTRIES WHERE THE FUND INVESTS. EMERGING MARKETS INVOLVE HEIGHTENED RISKS
RELATED TO THE SAME FACTORS, IN ADDITION TO THOSE ASSOCIATED WITH THEIR
RELATIVELY SMALL SIZE AND LESSER LIQUIDITY. ALSO, AS A NONDIVERSIFIED INVESTMENT
COMPANY, THE FUND MAY INVEST IN A RELATIVELY SMALL NUMBER OF ISSUERS AND, AS A
RESULT, BE SUBJECT TO A GREATER RISK OF LOSS WITH RESPECT TO ITS PORTFOLIO
SECURITIES.

1. Total return calculations represent the cumulative and average annual
changes in value of an investment over the periods indicated. Six-month
return has not been annualized.

2. Assumes reinvestment of distributions based on net asset value.

3. Assumes reinvestment of distributions based on the dividend reinvestment
and cash purchase plan.

Semiannual Report | 7

Important Notice to Shareholders

SHARE REPURCHASE PROGRAM

The Fund's Board previously authorized management to implement an open-market
share repurchase program pursuant to which the Fund may purchase Fund shares,
from time to time, in open-market transactions, at the discretion of management.
This authorization remains in effect.

8 | Semiannual Report

Templeton Global Income Fund

FINANCIAL HIGHLIGHTS

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SIX MONTHS ENDED
FEBRUARY 28, 2007 YEAR ENDED AUGUST 31,
(UNAUDITED) 2006 2005 2004 2003 2002
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PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)

Net asset value, beginning of period .......... $ 8.93 $ 9.02 $ 8.77 $ 8.18 $ 7.29 $ 6.99
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Income from investment operations:

Net investment income a .................... 0.19 0.37 0.39 0.41 0.41 0.45

Net realized and unrealized gains
(losses) ................................ 0.35 0.33 0.49 0.72 0.98 0.39
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Total from investment operations .............. 0.54 0.70 0.88 1.13 1.39 0.84
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Less distributions from:

Net investment income and net realized
foreign currency gains .................. (0.65) (0.79) (0.63) (0.54) (0.50) (0.34)

Tax return of capital ...................... -- -- -- -- -- (0.20)
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Total distributions ........................... (0.65) (0.79) (0.63) (0.54) (0.50) (0.54)
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Net asset value, end of period ................ $ 8.82 $ 8.93 $ 9.02 $ 8.77 $ 8.18 $ 7.29
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Market value, end of period b ................. $ 9.23 $ 9.15 $ 8.85 $ 8.56 $ 7.95 $ 7.35
===================================================================================

Total return (based on market value per
share) c ................................... 8.26% 13.39% 10.61% 14.69% 15.37% 21.32%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ............. $ 1,151,181 $1,161,850 $1,172,240 $1,136,976 $1,058,791 $944,602

Ratios to average net assets:

Expenses ................................... 0.77% d,e 0.80% e 0.76% e 0.77% e 0.72% 0.75%

Net investment income ...................... 4.31% d 4.16% 4.22% 4.66% 5.16% 6.28%

Portfolio turnover rate ....................... 21.60% 49.20% 41.81% 48.85% 69.77% 82.31%

a Based on average daily shares outstanding.

b Based on the last sale on the New York Stock Exchange.

c Total return is not annualized for periods less than one year.

d Annualized.

e Benefit of expense reduction rounds to less than 0.01%.

Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 9

Templeton Global Income Fund

STATEMENT OF INVESTMENTS, FEBRUARY 28, 2007 (UNAUDITED)

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PRINCIPAL AMOUNT a VALUE
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LONG TERM INVESTMENTS 87.5%
BONDS 86.3%
ARGENTINA 2.8%
b,c Government of Argentina, FRN, 5.475%, 8/03/12 .............................. 45,600,000 $ 32,426,160
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AUSTRALIA 3.4%
New South Wales Treasury Corp., 8.00%, 3/01/08 ............................. 16,000,000 AUD 12,820,937
Queensland Treasury Corp., Series 07G, 8.00%, 9/14/07 ...................... 33,100,000 AUD 26,325,450
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39,146,387
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BRAZIL 4.8%
Nota Do Tesouro Nacional,
9.762%, 1/01/10 .......................................................... 14,000 d BRL 6,294,543
9.762%, 1/01/12 .......................................................... 59,200 d BRL 25,879,001
9.762%, 1/01/14 .......................................................... 15,000 d BRL 6,402,028
10.00%, 1/01/17 .......................................................... 8,500 d BRL 3,536,717
e Index Linked, 6.00%, 11/15/09 ............................................ 8,700 d BRL 6,413,084
e Index Linked, 6.00%, 5/15/15 ............................................. 9,400 d BRL 6,542,870
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55,068,243
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CANADA 7.5%
Government of Canada, 7.25%, 6/01/07 ....................................... 23,500,000 CAD 20,257,054
Province of Alberta, 5.00%, 12/16/08 ....................................... 28,530,000 CAD 24,816,695
Province of British Columbia, 6.00%, 6/09/08 ............................... 7,000,000 CAD 6,123,945
Province of Manitoba, 6.375%, 9/01/15 ...................................... 14,800,000 NZD 10,062,318
Province of Ontario,
3.875%, 3/08/08 .......................................................... 6,800,000 CAD 5,798,743
6.125%, 9/12/07 .......................................................... 15,840,000 CAD 13,662,110
6.25%, 6/16/15 ........................................................... 8,460,000 NZD 5,658,975
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86,379,840
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GERMANY 4.7%
KfW Bankengruppe,
b FRN, 0.325%, 8/08/11 ..................................................... 3,800,000,000 JPY 32,114,421
senior note, 8.25%, 9/20/07 .............................................. 1,509,000,000 ISK 22,043,372
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54,157,793
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INDONESIA 8.5%
Government of Indonesia,
13.15%, 3/15/10 .......................................................... 21,330,000,000 IDR 2,604,495
15.425%, 9/15/10 ......................................................... 4,800,000,000 IDR 636,040
13.15%, 1/15/12 .......................................................... 33,200,000,000 IDR 4,150,385
14.25%, 6/15/13 .......................................................... 84,050,000,000 IDR 11,068,292
14.275%, 12/15/13 ........................................................ 126,836,000,000 IDR 16,841,551
11.00%, 10/15/14 ......................................................... 55,000,000,000 IDR 6,346,852
9.50%, 6/15/15 ........................................................... 33,050,000,000 IDR 3,515,284
10.75%, 5/15/16 .......................................................... 82,245,000,000 IDR 9,355,747
11.50%, 9/15/19 .......................................................... 23,000,000,000 IDR 2,688,769
11.00%, 11/15/20 ......................................................... 359,100,000,000 IDR 40,603,473
---------------
97,810,888
---------------

10 | Semiannual Report

Templeton Global Income Fund

STATEMENT OF INVESTMENTS, FEBRUARY 28, 2007 (UNAUDITED) (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
BONDS (CONTINUED)
IRAQ 1.1%
f Government of Iraq, Reg S, 5.80%, 1/15/28 .................................. 20,050,000 $ 13,132,750
---------------
MALAYSIA 2.4%
Government of Malaysia,
6.90%, 3/15/07 ........................................................... 3,000,000 MYR 857,535
8.60%, 12/01/07 .......................................................... 14,085,000 MYR 4,172,702
3.135%, 12/17/07 ......................................................... 2,925,000 MYR 832,819
4.305%, 2/27/09 .......................................................... 75,200,000 MYR 21,765,613
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27,628,669
---------------
MEXICO 2.3%
Government of Mexico,
8.00%, 12/17/15 .......................................................... 305,000 g MXN 2,729,564
10.00%, 12/05/24 ......................................................... 2,207,000 g MXN 23,333,198
---------------
26,062,762
---------------
NEW ZEALAND 1.1%
Government of New Zealand, 6.00%, 11/15/11 ................................. 18,273,000 NZD 12,635,173
---------------
PERU 3.7%
Government of Peru,
7.84%, 8/12/20 ........................................................... 47,200,000 PEN 16,945,547
Series 7, 8.60%, 8/12/17 ................................................. 61,545,000 PEN 22,977,809
Peru Bond Soberano, 9.91%, 5/05/15 ......................................... 6,500,000 PEN 2,563,465
---------------
42,486,821
---------------
PHILIPPINES 0.8%
f Government of the Philippines, Reg S, 9.125%, 2/22/10 ...................... 6,570,000 EUR 9,792,819
---------------
POLAND 8.1%
Government of Poland,
8.50%, 5/12/07 ........................................................... 68,700,000 PLN 23,457,105
5.75%, 6/24/08 ........................................................... 43,900,000 PLN 15,105,193
6.00%, 5/24/09 ........................................................... 65,250,000 PLN 22,707,822
5.75%, 9/23/22 ........................................................... 90,500,000 PLN 32,051,042
---------------
93,321,162
---------------
SINGAPORE 1.7%
Government of Singapore, 4.00%, 3/01/07 .................................... 29,475,000 SGD 19,276,045
---------------
SLOVAK REPUBLIC 1.7%
Government of Slovakia,
4.80%, 4/14/09 ........................................................... 298,100,000 SKK 11,618,453
7.50%, 3/13/12 ........................................................... 84,000,000 SKK 3,704,568
4.90%, 2/11/14 ........................................................... 53,300,000 SKK 2,120,816
5.30%, 5/12/19 ........................................................... 50,200,000 SKK 2,111,603
---------------
19,555,440
---------------

Semiannual Report | 11

Templeton Global Income Fund

STATEMENT OF INVESTMENTS, FEBRUARY 28, 2007 (UNAUDITED) (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
BONDS (CONTINUED)
SOUTH KOREA 11.8%
Government of Korea,
6.15%, 7/10/07 ........................................................... 10,000,000,000 KRW $ 10,662,676
5.77%, 10/09/07 .......................................................... 39,640,000,000 KRW 42,291,955
Korea Treasury Note,
4.75%, 3/12/08 ........................................................... 8,075,000,000 KRW 8,556,623
4.50%, 9/09/08 ........................................................... 12,000,000,000 KRW 12,670,464
4.25%, 9/10/08 ........................................................... 58,300,550,000 KRW 61,342,982
---------------
135,524,700
---------------
SUPRANATIONAL h 3.0%
European Investment Bank,
2.125%, 9/20/07 .......................................................... 1,600,000,000 JPY 13,622,871
b senior note, FRN, 0.205%, 9/21/11 ........................................ 2,000,000,000 JPY 16,895,047
Inter-American Development Bank, 6.00%, 12/15/17 ........................... 6,000,000 NZD 4,005,576
---------------
34,523,494
---------------
SWEDEN 9.0%
Government of Sweden,
8.00%, 8/15/07 ........................................................... 554,665,000 SEK 80,886,084
6.50%, 5/05/08 ........................................................... 157,600,000 SEK 23,293,638
---------------
104,179,722
---------------
THAILAND 4.4%
Bank of Thailand Bond,
3.25%, 5/19/07 ........................................................... 407,690,000 THB 11,454,527
5.00%, 1/12/08 ........................................................... 187,040,000 THB 5,297,539
5.50%, 8/10/08 ........................................................... 308,990,000 THB 8,842,510
Government of Thailand,
5.60%, 7/07/07 ........................................................... 655,600,000 THB 18,538,865
4.125%, 2/12/08 .......................................................... 178,700,000 THB 5,022,323
8.50%, 12/08/08 .......................................................... 31,000,000 THB 934,350
---------------
50,090,114
---------------
UNITED STATES 3.5%
FNMA,
2.125%, 10/09/07 ......................................................... 4,020,000,000 JPY 34,264,163
1.75%, 3/26/08 ........................................................... 660,000,000 JPY 5,639,791
---------------
39,903,954
---------------
TOTAL BONDS (COST $916,263,891) ............................................ 993,102,936
---------------
WARRANTS 1.2%
ARGENTINA 1.2%
i Government of Argentina, wts., 12/15/35 .................................... 63,200,000 8,310,800
i Government of Argentina, wts., 12/15/35 .................................... 30,370,000 EUR 5,050,273
---------------
TOTAL WARRANTS (COST $9,600,575) ........................................... 13,361,073
---------------
TOTAL LONG TERM INVESTMENTS (COST $925,864,466) ............................ 1,006,464,009
---------------

12 | Semiannual Report
Templeton Global Income Fund

STATEMENT OF INVESTMENTS, FEBRUARY 28, 2007 (UNAUDITED) (CONTINUED)

-----------------------------------------------------------------------------------------------------------------------------
SHARES/PRINCIPAL
AMOUNT a VALUE
-----------------------------------------------------------------------------------------------------------------------------

SHORT TERM INVESTMENTS 11.6%
FOREIGN GOVERNMENT SECURITIES 10.5%
EGYPT 2.9%
j Egypt Certificate of Deposit, 9/12/07 ...................................... 8,000,000 EGP $ 1,343,561
j Egypt Treasury Bills, 6/19/07 - 1/22/08 .................................... 192,075,000 EGP 32,058,219
--------------
33,401,780
--------------
NORWAY 4.7%
j Norwegian Treasury Bills, 9/19/07 - 12/19/07 ............................... 343,255,000 NOK 54,247,083
--------------
SWEDEN 0.4%
j Swedish Treasury Bill, 12/19/07 ............................................ 31,580,000 SEK 4,394,746
--------------
THAILAND 2.5%
j Thailand Treasury Bills, 4/05/07 - 1/10/08 ................................. 1,054,510,000 THB 28,906,149
--------------
TOTAL FOREIGN GOVERNMENT SECURITIES (COST $117,530,459) .................... 120,949,758
--------------
TOTAL INVESTMENTS BEFORE MONEY MARKET FUND (COST $1,043,394,925) ........... 1,127,413,767
--------------
MONEY MARKET FUND (COST $13,206,299) 1.1%
k Franklin Institutional Fiduciary Trust Money Market Portfolio, 4.98% ....... 13,206,299 13,206,299
--------------
TOTAL INVESTMENTS (COST $1,056,601,224) 99.1%. ............................. 1,140,620,066
NET UNREALIZED LOSS ON FORWARD EXCHANGE CONTRACTS (0.1)% ................... (1,232,984)
OTHER ASSETS, LESS LIABILITIES 1.0% ........................................ 11,793,504
--------------

NET ASSETS 100.0% .......................................................... $1,151,180,586
==============

CURRENCY ABBREVIATIONS

AUD - Australian Dollar
BRL - Brazilian Real
CAD - Canadian Dollar
EGP - Egyptian Pound
EUR - Euro
IDR - Indonesian Rupiah
ISK - Iceland Krona
JPY - Japanese Yen
KRW - South Korean Won
MXN - Mexican Peso
MYR - Malaysian Ringgit
NOK - Norwegian Krone
NZD - New Zealand Dollar
PEN - Peruvian Nuevo Sol
PLN - Polish Zloty
SEK - Swedish Krona
SGD - Singapore Dollar
SKK - Slovak Koruna
THB - Thailand Baht

Semiannual Report | 13

Templeton Global Income Fund

STATEMENT OF INVESTMENTS, FEBRUARY 28, 2007 (UNAUDITED) (CONTINUED)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
SELECTED PORTFOLIO ABBREVIATIONS
FNMA - Federal National Mortgage Association
FRN - Floating Rate Note

a The principal amount is stated in U.S. dollars unless otherwise indicated.

b The coupon rate shown represents the rate at period end.

c The principal amount is stated in original face, and scheduled paydowns
are reflected in the market price on ex-date.

d Principal is stated in 100 Real units.

e Redemption price at maturity is adjusted for inflation. See Note 1(e).

f Security was purchased pursuant to Regulation S under the Securities Act
of 1933, which exempts from registration securities offered and sold
outside of the United States. Such a security cannot be sold in the United
States without either an effective registration statement filed pursuant
to the Securities Act of 1933, or pursuant to an exemption from
registration. These securities have been deemed liquid under guidelines
approved by the Fund's Board of Trustees. At February 28, 2007, the
aggregate value of these securities was $22,925,569, representing 1.99% of
net assets.

g Principal is stated in 100 Peso units.

h A supranational organization is an entity formed by two or more central
governments through international treaties.

i Warrants are linked to Argentine Republic Gross Domestic Product (GDP) and
do not pay principal over life of security or at expiration. Warrants
entitle the holder to receive only variable income payments, subject to
certain conditions, which are based on growth of Argentine GDP and the
principal or "notional" value of these GDP linked warrants.

j The security is traded on a discount basis with no stated coupon rate.

k See Note 10 regarding investments in the Franklin Institutional Fiduciary
Trust Money Market Portfolio. The rate shown is the annualized seven-day
yield at period end.

14 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report

Templeton Global Income Fund

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
February 28, 2007 (unaudited)

Assets:
Investments in securities:
Cost - Unaffiliated issuers ............................ $ 1,043,394,925
Cost - Sweep Money Fund (Note 10) ...................... 13,206,299
---------------
Total cost of investments .............................. $ 1,056,601,224
---------------
Value - Unaffiliated issuers ........................... $ 1,127,413,767
Value - Sweep Money Fund (Note 10) ..................... 13,206,299
---------------
Total value of investments ............................. 1,140,620,066
Foreign currency, at value (cost $2,078,870) ............. 3,070,159
Receivables:
Dividends and interest ................................. 21,665,680
Unrealized gain on forward exchange contracts (Note 7) ... 2,034,016
---------------
Total assets ......................................... 1,167,389,921
---------------
Liabilities:
Payables:
Investment securities purchased ........................ 5,904,204
Affiliates ............................................. 546,754
Distributions to shareholders .......................... 5,157,204
Funds advanced by custodian .............................. 612,783
Unrealized loss on forward exchange contracts (Note 7) ... 3,267,000
Accrued expenses and other liabilities ................... 721,390
---------------
Total liabilities .................................... 16,209,335
---------------
Net assets, at value ............................... $ 1,151,180,586
===============
Net assets consist of:
Paid-in capital .......................................... $ 1,081,171,502
Distributions in excess of net investment income ......... (25,723,058)
Net unrealized appreciation (depreciation) ............... 83,757,874
Accumulated net realized gain (loss) ..................... 11,974,268
===============
Net assets, at value ............................... $ 1,151,180,586
===============
Shares outstanding .......................................... 130,590,249
===============
Net asset value per share ................................... $ 8.82
===============

Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 15

Templeton Global Income Fund

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the six months ended February 28, 2007 (unaudited)

Investment income:
Dividends
Unaffiliated issuers ................................... $ 654,884
Sweep Money Fund (Note 10) ............................. 273,974
Interest (net of foreign taxes of $1,339,652) ............ 28,380,492
---------------
Total investment income .............................. 29,309,350
---------------
Expenses:
Management fees (Note 3a) ................................ 2,896,157
Administrative fees (Note 3b) ............................ 712,780
Transfer agent fees ...................................... 146,941
Custodian fees (Note 4) .................................. 487,446
Reports to shareholders .................................. 58,603
Registration and filing fees ............................. 60,131
Professional fees ........................................ 47,212
Trustees' fees and expenses .............................. 38,270
Other .................................................... 11,818
---------------
Total expenses ....................................... 4,459,358
---------------
Expense reductions (Note 4) .......................... (942)
---------------
Net expenses ....................................... 4,458,416
---------------
Net investment income ............................ 24,850,934
---------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments ............................................ 41,261,208
Foreign currency transactions .......................... (1,173,159)
---------------
Net realized gain (loss) ........................... 40,088,049
---------------
Net change in unrealized appreciation (depreciation) on:
Investments .............................................. 2,715,425
Translation of assets and liabilities denominated in
foreign currencies ..................................... 961,543
---------------
Net change in unrealized appreciation
(depreciation) ................................... 3,676,968
---------------
Net realized and unrealized gain (loss) ..................... 43,765,017
---------------
Net increase (decrease) in net assets resulting from
operations ............................................... $ 68,615,951
===============

16 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report

Templeton Global Income Fund

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

------------------------------------
SIX MONTHS ENDED
FEBRUARY 28, 2007 YEAR ENDED
(UNAUDITED) AUGUST 31, 2006
------------------------------------

Increase (decrease) in net assets:
Operations:
Net investment income ............................................................ $ 24,850,934 $ 47,780,306
Net realized gain (loss) from investments and foreign currency transactions ...... 40,088,049 79,206,691
Net change in unrealized appreciation (depreciation) on investments and
translation of assets and liabilities denominated in foreign currencies ........ 3,676,968 (34,770,616)
------------------------------------
Net increase (decrease) in net assets resulting from operations ............... 68,615,951 92,216,381
------------------------------------
Distributions to shareholders from net investment income and net realized foreign
currency gains ................................................................. (84,180,132) (103,207,312)
------------------------------------
Capital share transactions: (Note 2) ............................................. 4,895,019 600,550
------------------------------------
Net increase (decrease) in net assets ......................................... (10,669,162) (10,390,381)
Net assets:
Beginning of period .............................................................. 1,161,849,748 1,172,240,129
------------------------------------
End of period .................................................................... $ 1,151,180,586 $ 1,161,849,748
====================================
Distributions in excess of net investment income included in net assets/Undistributed
net investment income:
End of period .................................................................... $ (25,723,058) $ 33,606,140
====================================

Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 17

Templeton Global Income Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Templeton Global Income Fund (the Fund) is registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as a non-diversified, closed-end
investment company.

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

Securities listed on a securities exchange or on the NASDAQ National Market
System are valued at the last quoted sale price or the official closing price of
the day, respectively. Over-the-counter securities and listed securities for
which there is no reported sale are valued within the range of the most recent
quoted bid and ask prices. Securities that trade in multiple markets or on
multiple exchanges are valued according to the broadest and most representative
market. Investments in open-end mutual funds are valued at the closing net asset
value.

Corporate debt securities and government securities generally trade in the
over-the-counter market rather than on a securities exchange. The Fund may
utilize independent pricing services, quotations from bond dealers, and
information with respect to bond and note transactions, to assist in determining
a current market value for each security. The Fund's pricing services may use
valuation models or matrix pricing which considers information with respect to
comparable bond and note transactions, quotations from bond dealers, or by
reference to other securities that are considered comparable in such
characteristics as rating, interest rate and maturity date, option adjusted
spread models, prepayment projections, interest rate spreads and yield curves,
to determine current value.

The Fund has procedures to determine the fair value of individual securities and
other assets for which market prices are not readily available or which may not
be reliably priced. Methods for valuing these securities may include:
fundamental analysis, matrix pricing, discounts from market prices of similar
securities, or discounts applied due to the nature and duration of restrictions
on the disposition of the securities. Due to the inherent uncertainty of
valuations of such securities, the fair values may differ significantly from the
values that would have been used had a ready market for such investments
existed. Occasionally, events occur between the time at which trading in a
security is completed and the close of the NYSE that might call into question
the availability (including the reliability) of the value of a portfolio
security held by the Fund. If such an event occurs, the securities may be valued
using fair value procedures, which may include the use of independent pricing
services. All security valuation procedures are approved by the Fund's Board of
Trustees.

18 | Semiannual Report

Templeton Global Income Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

B. FOREIGN CURRENCY TRANSLATION

Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the exchange rate of such
currencies against U.S. dollars on the date of valuation. Purchases and sales of
securities, income and expense items denominated in foreign currencies are
translated into U.S. dollars at the exchange rate in effect on the transaction
date. Occasionally, events may impact the availability or reliability of foreign
exchange rates used to convert the U.S. dollar equivalent value. If such an
event occurs, the foreign exchange rate will be valued at fair value using
procedures established and approved by the Fund's Board of Trustees.

The Fund does not separately report the effect of changes in foreign exchange
rates from changes in market prices on securities held. Such changes are
included in net realized and unrealized gain or loss from investments on the
Statement of Operations.

Realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on securities transactions and the difference between the recorded amounts
of dividends, interest, and foreign withholding taxes and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in foreign exchange rates on
foreign denominated assets and liabilities other than investments in securities
held at the end of the reporting period.

C. FOREIGN CURRENCY CONTRACTS

When the Fund purchases or sells foreign securities it may enter into foreign
exchange contracts to minimize foreign exchange risk from the trade date to the
settlement date of the transactions. A foreign exchange contract is an agreement
between two parties to exchange different currencies at an agreed upon exchange
rate at a future date. Realized and unrealized gains and losses on these
contracts are included in the Statement of Operations.

The Fund may also enter into forward exchange contracts to hedge against
fluctuations in foreign exchange rates or to gain exposure to certain foreign
currencies. These contracts are valued daily by the Fund and the unrealized
gains or losses on the contracts, as measured by the difference between the
contractual forward foreign exchange rates and the forward rates at the
reporting date, are included in the Statement of Assets and Liabilities.
Realized and unrealized gains and losses on these contracts are included in the
Statement of Operations.

The risks of these contracts include movement in the values of the foreign
currencies relative to the U.S. dollar and the possible inability of the
counterparties to fulfill their obligations under the contracts, which may be in
excess of the amount reflected in the Statement of Assets and Liabilities.

Semiannual Report | 19

Templeton Global Income Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. INCOME TAXES

No provision has been made for U.S. income taxes because it is the Fund's policy
to qualify as a regulated investment company under the Internal Revenue Code and
to distribute to shareholders substantially all of its taxable income and net
realized gains.

Foreign securities held by the Fund may be subject to foreign taxation on
interest income received. Foreign taxes, if any, are recorded based on the tax
regulations and rates that exist in the foreign markets in which the Fund
invests.

E. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Interest income and estimated expenses are accrued daily. Amortization of
premium and accretion of discount on debt securities are included in interest
income. Dividend income is recorded on the ex-dividend date. Distributions to
shareholders are recorded on the ex-dividend date and are determined according
to income tax regulations (tax basis). Distributable earnings determined on a
tax basis may differ from earnings recorded in accordance with accounting
principles generally accepted in the United States. These differences may be
permanent or temporary. Permanent differences are reclassified among capital
accounts to reflect their tax character. These reclassifications have no impact
on net assets or the results of operations. Temporary differences are not
reclassified, as they may reverse in subsequent periods.

Inflation-indexed bonds provide an inflation hedge through periodic adjustments
in the security's interest rate and principal redemption value, by amounts
corresponding to the current rate of inflation. Any such adjustments, including
adjustments to principal redemption value, are recorded as interest income.

F. ACCOUNTING ESTIMATES

The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the amounts of income
and expenses during the reporting period. Actual results could differ from those
estimates.

G. GUARANTEES AND INDEMNIFICATIONS

Under the Fund's organizational documents, its officers and trustees are
indemnified by the Fund against certain liabilities arising out of the
performance of their duties to the Fund. Additionally, in the normal course of
business, the Fund enters into contracts with service providers that contain
general indemnification clauses. The Fund's maximum exposure under these
arrangements is unknown as this would involve future claims that may be made
against the Fund that have not yet occurred. Currently, the Fund expects the
risk of loss to be remote.

20 | Semiannual Report

Templeton Global Income Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

2. SHARES OF BENEFICIAL INTEREST

At February 28, 2007, there were an unlimited number of shares authorized
(without par value). During the period ended February 28, 2007, 544,388 shares
were issued for $4,895,019 from reinvested distributions. During the year ended
August 31, 2006, 66,994 shares were issued for $600,550 from reinvested
distributions.

The Fund's Board of Trustees previously authorized an open-market share
repurchase program pursuant to which the Fund may purchase, from time to time,
Fund shares in open-market transactions, at the discretion of management. This
authorization remains in effect. Through February 28, 2007, the Fund had
repurchased a total of 11,210,400 shares. During the periods ended August 31,
2006 and February 28, 2007, there were no share repurchases.

3. TRANSACTIONS WITH AFFILIATES

Franklin Resources, Inc. is the holding company for various subsidiaries that
together are referred to as Franklin Templeton Investments. Certain officers and
trustees of the Fund are also officers and/or directors of the following
subsidiaries:

--------------------------------------------------------------------------------
SUBSIDIARY AFFILIATION
--------------------------------------------------------------------------------
Franklin Advisers, Inc. (Advisers) Investment manager
Franklin Templeton Services, LLC (FT Services) Administrative manager

A. MANAGEMENT FEES

The Fund pays investment management fees to Advisers based on the average daily
net assets of the Fund as follows:

--------------------------------------------------------------------------------
ANNUALIZED FEE RATE NET ASSETS
--------------------------------------------------------------------------------
0.550% Up to and including $200 million
0.500% Over $200 million, up to and including $1 billion
0.480% Over $1 billion, up to and including $5 billion
0.460% Over $5 billion, up to and including $10 billion
0.440% Over $10 billion, up to and including $15 billion
0.420% Over $15 billion, up to and including $20 billion
0.400% In excess of $20 billion

B. ADMINISTRATIVE FEES

The Fund pays an administrative fee to FT Services based on the Fund's average
daily net assets of the Fund as follows:

Semiannual Report | 21

Templeton Global Income Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

4. EXPENSE OFFSET ARRANGEMENT

The Fund has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Fund's custodian expenses. During the period ended February 28, 2007, there
were no credits earned.

5. INCOME TAXES

For tax purposes, capital losses may be carried over to offset future capital
gains, if any. At August 31, 2006, the capital loss carryforwards were as
follows:

Capital loss carryforwards expiring in:
2010 ..................................................... $ 23,832,302
2011 ..................................................... 4,209,282
---------------
$ 28,041,584
===============

At February 28, 2007, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:

Cost of investments ......................................... $ 1,073,564,827
===============

Unrealized appreciation ..................................... $ 74,556,192
Unrealized depreciation ..................................... (7,500,953)
---------------
Net unrealized appreciation (depreciation) .................. $ 67,055,239
===============

Net investment income differs for financial statement and tax purposes primarily
due to differing treatments of foreign currency transactions, and bond discounts
and premiums.

Net realized gains (losses) differ for financial statement and tax purposes
primarily due to differing treatments of wash sales, foreign currency
transactions, and bond discounts and premiums.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short term securities) for the
period ended February 28, 2007, aggregated $233,313,378 and $364,633,603,
respectively.

22 | Semiannual Report

Templeton Global Income Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

7. FORWARD EXCHANGE CONTRACTS

At February 28, 2007, the Fund had the following forward exchange contracts
outstanding:

CONTRACT SETTLEMENT UNREALIZED UNREALIZED
AMOUNT a DATE GAIN LOSS
----------------------------------------------------------------------------------------------------

CONTRACTS TO BUY

543,250,000 Japanese Yen ......... 5,000,000 3/05/07 $ (408,920)
225,000,000 Indian Rupee ......... 7,995,736 NZD 3/21/07 (518,237)
5,394,000 Romania Leu .......... 1,450,000 EUR 3/28/07 $ 179,683
128,800,000 Japanese Yen ......... 1,150,000 4/19/07 (55,117)
21,335,300 Romania Leu .......... 5,800,000 EUR 4/23/07 601,029
345,000,000 Japanese Yen ......... 3,077,060 6/27/07 (117,421)
1,350,000,000 Japanese Yen ......... 11,677,322 7/17/07 (66,709)
223,340,000 Japanese Yen ......... 2,000,000 9/04/07 (67,326)
560,000,000 Iceland Krona ........ 7,488,633 10/09/07 524,518
547,775,000 Indian Rupee ......... 18,247,785 NZD 10/29/07 (446,740)
285,000,000 Indian Rupee ......... 9,773,663 NZD 10/30/07 (425,392)
1,950,000,000 Japanese Yen ......... 16,746,822 11/09/07 257,927
1,508,082,050 Japanese Yen ......... 12,931,717 11/13/07 225,501
1,056,356,000 Kazakhstan Tenge ..... 8,680,000 1/16/08 (127,095)
1,946,000,000 Kazakhstan Tenge ..... 16,000,000 1/18/08 (243,936)

CONTRACTS TO SELL

2,470,410 Euro ................. 348,994,821 JPY 3/06/07 (320,545)
16,563,648 New Zeland Dollar .... 495,418,717 INR 7/27/07 (442,682)
52,217,395 Mexican Peso ......... 2,562,829,758 CLP 8/16/07 127,456
36,225,716 Mexican Peso ......... 1,767,670,025 CLP 8/20/07 70,259
29,507,162 Mexican Peso ......... 1,414,986,459 CLP 9/12/07 15,706
11,063,812 Mexican Peso ......... 527,411,931 CLP 9/14/07 212
30,997,821 Mexican Peso ......... 124,614,340 INR 1/22/08 31,725
65,279,583 Mexican Peso ......... 258,415,756 INR 2/28/08 (20,573)
65,781,104 Mexican Peso ......... 261,052,311 INR 3/03/08 (6,307)
--------------------------
Unrealized gain (loss) on forward exchange contracts .............. $ 2,034,016 (3,267,000)
==========================
Net unrealized gain (loss) on forward exchange contracts ....... $ (1,232,984)
============

a In U.S. Dollar unless otherwise indicated.

CURRENCY ABBREVIATIONS
CLP - Chilean Peso
EUR - Euro
INR - Indian Rupee
JPY - Japanese Yen
NZD - New Zealand Dollar

Semiannual Report | 23

Templeton Global Income Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

8. CREDIT RISK

The Fund has 19.20% of its portfolio invested in below investment grade and
comparable quality unrated high yield securities, which tend to be more
sensitive to economic conditions than higher rated securities. The risk of loss
due to default by the issuer may be significantly greater for the holders of
high yielding securities because such securities are generally unsecured and are
often subordinated to other creditors of the issuer.

9. CONCENTRATION OF RISK

Investing in foreign securities may include certain risks and considerations not
typically associated with investing in U.S. securities, such as fluctuating
currency values and changing local and regional economic, political and social
conditions, which may result in greater market volatility. In addition, certain
foreign securities may not be as liquid as U.S. securities.

10. INVESTMENTS IN FRANKLIN INSTITUTIONAL FIDUCIARY TRUST MONEY MARKET PORTFOLIO

The Fund may invest in the Franklin Institutional Fiduciary Trust Money Market
Portfolio (the Sweep Money Fund), an open-end investment company managed by
Advisers. Management fees paid by the Fund are reduced on assets invested in the
Sweep Money Fund, in an amount not to exceed the management and administrative
fees paid by the Sweep Money Fund.

11. REGULATORY AND LITIGATION MATTERS

As part of various investigations by a number of federal, state, and foreign
regulators and governmental entities, including the Securities and Exchange
Commission ("SEC"), relating to certain practices in the mutual fund industry,
including late trading, market timing and marketing support payments to
securities dealers who sell fund shares ("marketing support"), Franklin
Resources, Inc. and certain of its subsidiaries (collectively, the "Company"),
entered into settlements with certain of those regulators and governmental
entities. Specifically, the Company entered into settlements with the SEC, among
others, concerning market timing and marketing support.

On June 23, 2006, the SEC approved the proposed plan of distribution for the
marketing support settlement, and disbursement of the settlement monies to the
designated funds, in accordance with the terms and conditions of that settlement
and plan, was completed in September 2006. The Fund did not participate in that
settlement.

The plan of distribution for the market timing settlement is currently under
review by the SEC staff. After publication of notice of the plan and a 30-day
comment period, the proposed plan of distribution will be submitted to the SEC
for approval. Following the SEC's approval of the plan of distribution, with
modifications as appropriate, distribution of the settlement monies will begin
in accordance with the terms and conditions of the settlement and plan.

24 | Semiannual Report

Templeton Global Income Fund

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

11. REGULATORY AND LITIGATION MATTERS (CONTINUED)

In addition, the Company, as well as most of the mutual funds within Franklin
Templeton Investments and certain current or former officers, Company directors,
fund directors, and employees, have been named in private lawsuits (styled as
shareholder class actions, or as derivative actions on behalf of either the
named funds or Franklin Resources, Inc.). The lawsuits relate to the industry
practices referenced above, as well as to allegedly excessive commissions and
advisory and distribution fees.

The Company and fund management believe that the claims made in each of the
private lawsuits referenced above are without merit and intend to defend against
them vigorously. The Company cannot predict with certainty the eventual outcome
of these lawsuits, nor whether they will have a material negative impact on the
Company. If it is determined that the Company bears responsibility for any
unlawful or inappropriate conduct that caused losses to the Fund, it is
committed to making the Fund or its shareholders whole, as appropriate.

12. NEW ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes -- an
Interpretation of FASB Statement No. 109" ("FIN 48"), which clarifies the
accounting for uncertainty in tax positions taken or expected to be taken in a
tax return. FIN 48 provides guidance on the measurement, recognition,
classification and disclosure of tax positions, along with accounting for the
related interest and penalties. FIN 48 is effective for fiscal years beginning
after December 15, 2006, and is to be applied to all open tax years as of the
date of effectiveness. On December 22, 2006, the Securities and Exchange
Commission extended the implementation date to no later than the last net asset
value calculation in the first semi-annual reporting period in 2007. The Fund is
currently evaluating the impact, if any, of applying the various provisions of
FIN 48.

In September 2006, FASB issued FASB Statement No. 157, "Fair Value Measurement"
("SFAS 157"), which defines fair value, establishes a framework for measuring
fair value, and expands disclosures about fair value measurements. SFAS 157 is
effective for fiscal years beginning after November 15, 2007, and interim
periods within those fiscal years. The Fund believes the adoption of SFAS 157
will have no material impact on its financial statements.

Semiannual Report | 25

Templeton Global Income Fund

ANNUAL MEETING OF SHAREHOLDERS, FEBRUARY 23, 2007

The Annual Meeting of Shareholders of the Fund was held at the Fund's offices,
500 E. Broward Blvd., Fort Lauderdale, Florida, on February 23, 2007. The
purpose of the meeting was to elect five Trustees of the Fund. At the meeting,
the following persons were elected by the shareholders to serve as Trustees of
the Fund: Frank J. Crothers, Charles B. Johnson, Gregory E. Johnson, Larry D.
Thompson and Robert E. Wade.* No other business was transacted at the meeting.

The results of the voting at the Annual Meeting are as follows:

The election of five (5) Trustees:

------------------------------------------------------------------------------------------------
% OF % OF
SHARES SHARES
% OF PRESENT % OF PRESENT
OUTSTANDING AND OUTSTANDING AND
TERM EXPIRING 2010 FOR SHARES VOTING WITHHELD SHARES VOTING
------------------------------------------------------------------------------------------------

Frank J. Crothers ..... 97,094,514 74.39% 98.54% 1,434,033 1.10% 1.46%
Charles B. Johnson .... 96,964,379 74.29% 98.41% 1,564,168 1.20% 1.59%
Gregory E. Johnson .... 97,031,262 74.34% 98.48% 1,497,285 1.15% 1.52%
Larry D. Thompson ..... 97,071,549 74.38% 98.52% 1,456,998 1.12% 1.48%

TERM EXPIRING 2009

Robert E. Wade ........ 97,059,098 74.37% 98.51% 1,469,449 1.13% 1.49%

* Harris J. Ashton, Edith E. Holiday, David W. Niemiec, Frank A. Olson and
Constantine D. Tseretopoulos are Trustees of the Fund who are currently
serving and whose terms of office continued after the Annual Meeting of
Shareholders.

26 | Semiannual Report

Templeton Global Income Fund

DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN

The Fund offers a Dividend Reinvestment and Cash Purchase Plan (the "Plan") with
the following features:

Shareholders must affirmatively elect to participate in the Plan; share
dividends and capital gains distributions will be reinvested automatically;
Mellon Investor Services, P.O. Box 3338, South Hackensack, NJ 07606-1938, will
provide additional Plan information upon request.

Whenever the Fund declares dividends in either cash or shares of the Fund, if
the market price is equal to or exceeds net asset value at the valuation date,
the participant will receive the dividends entirely in shares at a price equal
to the net asset value, but not less than 95% of the then current market price
of the Fund's shares. If the market price is lower than net asset value or if
dividends and/or capital gains distributions are payable only in cash, the
participant will receive shares purchased on the New York Stock Exchange or
otherwise on the open market.

A participant has the option of submitting additional cash payments to Mellon
Bank, N.A. (the "Plan Administrator"), in any amounts of at least $100, up to a
maximum of $5,000 per month, for the purchase of Fund shares for his or her
account. These payments shall be made by check or money order payable to "Mellon
Bank, N.A." and sent to Mellon Investor Services, P.O. Box 382009, Pittsburgh,
PA 15250-8009, Attention: Templeton Global Income Fund. The Plan Administrator
shall apply such payments (less a $5.00 service charge and less a pro rata share
of trading fees) to purchases of Fund shares on the open market.

The automatic reinvestment of dividends and/or capital gains does not relieve
the participant of any income tax that may be payable on dividends or
distributions.

Whenever shares are purchased on the New York Stock Exchange or otherwise on the
open market, each participant will pay a pro rata portion of trading fees.
Trading fees will be deducted from amounts to be invested. The Plan
Administrator's fee for a sale of shares through the Plan are $15.00 per
transaction plus a $0.12 per share trading fee.

A participant may withdraw from the Plan without penalty at any time by written
notice to the Plan Administrator sent to Mellon Investor Services, P.O. Box
3338, South Hackensack, NJ 07606-1938. Upon withdrawal, the participant will
receive, without charge, share certificates issued in the participant's name for
all full shares held by the Plan Administrator; or, if the participant wishes,
the Plan Administrator will sell the shares and send the proceeds to the
participant, less a service charge of $15.00 and less trading fees of $0.12 per
share.

DIRECT DEPOSIT SERVICE FOR REGISTERED SHAREHOLDERS

Cash distributions can now be electronically credited to a checking or savings
account at any financial institution that participates in the Automated Clearing
House ("ACH") system. The Direct Deposit service is provided for registered
shareholders at no charge.

To enroll in the service, access your account online by going to
www.melloninvestor.com/isd or dial 1-800-416-5585 (toll free) and follow the
instructions. Direct Deposit will begin with the next scheduled distribution
payment date following enrollment in the service.

Semiannual Report | 27

Templeton Global Income Fund

TRANSFER AGENT

Mellon Investor Services LLC
480 Washington Boulevard
Jersey City, NJ 07310
1-800-416-5585
www.melloninvestor.com

SHAREHOLDER INFORMATION

Shares of Templeton Global Income Fund are traded on the New York Stock Exchange
under the symbol "GIM." Information about the net asset value and the market
price is published each Monday in the Wall Street Journal, weekly in Barron's
and each Saturday in The New York Times and other newspapers. Daily market
prices for the Fund's shares are published in the "New York Stock Exchange
Composite Transactions" section of newspapers.

For current information about distributions and shareholder accounts, call
1-800-416-5585. Registered shareholders can access their Fund account on-line
with Investor ServiceDirect(R). For information go to Mellon Investor Services'
web site at https://vault.melloninvestor.com/isd and follow the instructions.

The daily closing net asset value as of the previous business day may be
obtained when available by calling Franklin Templeton Fund Information after 7
a.m. Pacific time any business day at 1-800/DIAL BEN(R) (1-800/342-5236). The
Fund's net asset value and dividends are also listed on the NASDAQ Stock Market,
Inc.'s Mutual Fund Quotation Service ("NASDAQ MFQS").

Shareholders not receiving copies of reports to shareholders because their
shares are registered in the name of a broker or a custodian can request that
they be added to the Fund's mailing list by writing Templeton Global Income
Fund, 100 Fountain Parkway, P.O. Box 33030, St. Petersburg, FL 33733-8030.

28 | Semiannual Report

Templeton Global Income Fund

SHAREHOLDER INFORMATION

PROXY VOTING POLICIES AND PROCEDURES

The Fund has established Proxy Voting Policies and Procedures ("Policies") that
the Fund uses to determine how to vote proxies relating to portfolio securities.
Shareholders may view the Fund's complete Policies online at
franklintempleton.com. Alternatively, shareholders may request copies of the
Policies free of charge by calling the Proxy Group collect at 1-954/527-7678 or
by sending a written request to: Franklin Templeton Companies, LLC, 500 East
Broward Boulevard, Suite 1500, Fort Lauderdale, FL 33394, Attention: Proxy
Group. Copies of the Fund's proxy voting records are also made available online
at franklintempleton.com and posted on the U.S. Securities and Exchange
Commission's website at sec.gov and reflect the most recent 12-month period
ended June 30.

QUARTERLY STATEMENT OF INVESTMENTS

The Fund files a complete statement of investments with the U.S. Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
website at sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800/SEC-0330.

CERTIFICATIONS

The Fund's Chief Executive Officer - Finance and Administration is required by
the New York Stock Exchange's Listing Standards to file annually with the
Exchange a certification that he is not aware of any violation by the Fund of
the Exchange's Corporate Governance Standards applicable to the Fund. The Fund
has filed such certification.

In addition, the Fund's Chief Executive Officer - Finance and Administration and
Chief Financial Officer and Chief Accounting Officer are required by the rules
of the U.S. Securities and Exchange Commission to provide certain certifications
with respect to the Fund's Form N-CSR and Form N-CSRS (which include the Fund's
annual and semiannual reports to shareholders) that are filed semiannually with
the Commission. The Fund has filed such certifications with its Form N-CSR for
the year ended August 31, 2006. Additionally, the Fund expects to file, on or
about April 30, 2007, such certifications with its Form N-CSRS for the six
months ended February 28, 2007.

Semiannual Report | 29

This page intentionally left blank.

Literature Request

LITERATURE REQUEST. TO RECEIVE A BROCHURE AND PROSPECTUS, PLEASE CALL US AT
1-800/DIAL BEN(R) (1-800/342-5236) OR VISIT FRANKLINTEMPLETON.COM. INVESTORS
SHOULD CAREFULLY CONSIDER A FUND'S INVESTMENT GOALS, RISKS, CHARGES AND EXPENSES
BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER INFORMATION. PLEASE
CAREFULLY READ THE PROSPECTUS BEFORE INVESTING. To ensure the highest quality of
service, we may monitor, record and access telephone calls to or from our
service departments. These calls can be identified by the presence of a regular
beeping tone.

FRANKLIN TEMPLETON INVESTMENTS

INTERNATIONAL

Mutual European Fund
Templeton BRIC Fund
Templeton China World Fund
Templeton Developing Markets Trust
Templeton Emerging Markets Small Cap Fund
Templeton Foreign Fund
Templeton Foreign Smaller Companies Fund
Templeton International (Ex EM) Fund 1

GLOBAL

Mutual Discovery Fund
Templeton Global Long-Short Fund
Templeton Global Opportunities Trust
Templeton Global Smaller Companies Fund
Templeton Growth Fund
Templeton World Fund

GROWTH

Franklin Aggressive Growth Fund
Franklin Capital Growth Fund
Franklin Flex Cap Growth Fund
Franklin Small-Mid Cap Growth Fund
Franklin Small Cap Growth Fund II 1

VALUE

Franklin Balance Sheet Investment Fund 2
Franklin Equity Income Fund
Franklin Large Cap Value Fund
Franklin MicroCap Value Fund 2
Franklin MidCap Value Fund
Franklin Small Cap Value Fund
Mutual Beacon Fund
Mutual Qualified Fund
Mutual Recovery Fund 3
Mutual Shares Fund

BLEND

Franklin Balanced Fund
Franklin Blue Chip Fund 1
Franklin Convertible Securities Fund
Franklin Growth Fund
Franklin Rising Dividends Fund
Franklin U.S. Long-Short Fund

SECTOR

Franklin Biotechnology Discovery Fund
Franklin DynaTech Fund
Franklin Global Communications Fund
Franklin Global Health Care Fund
Franklin Global Real Estate Fund
Franklin Gold and Precious Metals Fund
Franklin Natural Resources Fund
Franklin Real Estate Securities Fund
Franklin Technology Fund
Franklin Utilities Fund
Mutual Financial Services Fund

ASSET ALLOCATION

Franklin Templeton Corefolio Allocation Fund
Franklin Templeton Founding Funds Allocation Fund
Franklin Templeton Perspectives Allocation Fund

TARGET FUNDS

Franklin Templeton Conservative Target Fund
Franklin Templeton Growth Target Fund
Franklin Templeton Moderate Target Fund

RETIREMENT TARGET FUNDS

Franklin Templeton 2015 Retirement Target Fund
Franklin Templeton 2025 Retirement Target Fund
Franklin Templeton 2035 Retirement Target Fund
Franklin Templeton 2045 Retirement Target Fund

INCOME

Franklin Adjustable U.S. Government
Securities Fund 4
Franklin Floating Rate Daily Access Fund
Franklin High Income Fund 5
Franklin Income Fund
Franklin Limited Maturity
U.S. Government Securities Fund 4
Franklin Low Duration Total Return Fund
Franklin Real Return Fund
Franklin Strategic Income Fund
Franklin Strategic Mortgage Portfolio
Franklin Templeton Hard Currency Fund
Franklin Total Return Fund
Franklin U.S. Government Securities Fund 4
Templeton Global Bond Fund
Templeton Income Fund

TAX-FREE INCOME 6

NATIONAL FUNDS

Double Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free Income Fund
Insured Tax-Free Income Fund 7

LIMITED-TERM FUNDS

California Limited-Term Tax-Free Income Fund
Federal Limited-Term Tax-Free Income Fund
New York Limited-Term Tax-Free Income Fund

INTERMEDIATE-TERM FUNDS

California Intermediate-Term Tax-Free Income Fund
Federal Intermediate-Term Tax-Free Income Fund
New York Intermediate-Term Tax-Free Income Fund

STATE-SPECIFIC

Alabama Michigan 7
Arizona Minnesota 7
California 8 Missouri
Colorado New Jersey
Connecticut New York 8
Florida 8 North Carolina
Georgia Ohio 7
Kentucky Oregon
Louisiana Pennsylvania
Maryland Tennessee
Massachusetts 7 Virginia

INSURANCE FUNDS

Franklin Templeton Variable Insurance Products
Trust 9

1. The fund is closed to new investors. Existing shareholders can continue
adding to their accounts.

2. The fund is only open to existing shareholders and select retirement
plans.

3. The fund is a continuously offered, closed-end fund. Shares may be
purchased daily; there is no daily redemption. However, each quarter,
pending board approval, the fund will authorize the repurchase of 5%-25%
of the outstanding number of shares. Investors may tender all or a portion
of their shares during the tender period.

4. An investment in the fund is neither insured nor guaranteed by the U.S.
government or by any other entity or institution.

5. Effective 10/1/06, Franklin's AGE High Income Fund changed its name to
Franklin High Income Fund. The fund's investment goal and strategy
remained the same.

6. For investors subject to the alternative minimum tax, a small portion of
fund dividends may be taxable. Distributions of capital gains are
generally taxable.

7. Portfolio of insured municipal securities.

8. These funds are available in two or more variations, including long-term
portfolios, portfolios of insured securities, a high-yield portfolio (CA)
and limited-term, intermediate-term and money market portfolios (CA and
NY).

9. The funds of the Franklin Templeton Variable Insurance Products Trust are
generally available only through insurance company variable contracts.

01/07 Not part of the semiannual report

[LOGO](R) 100 Fountain Parkway
FRANKLIN TEMPLETON P.O. Box 33030
INVESTMENTS St. Petersburg, FL 33733-8030

SEMIANNUAL REPORT

TEMPLETON GLOBAL
INCOME FUND

INVESTMENT MANAGER

Franklin Advisers, Inc.

TRANSFERAGENT

Mellon Investor Services LLC
P.O. Box 3315
South Hackensack, NJ 07606-1915
Toll free number: 1-800/416-5585
Hearing Impaired phone number: 1-800/231-5469
Foreign Shareholders phone number: 201/680-6578
www.melloninvestor.com/isd

FUND INFORMATION

1-800/342-5236

Investors should be aware that the value of investments made for the Fund may go
down as well as up. Like any investment in securities, the value of the Fund's
portfolio will be subject to the risk of loss from market, currency, economic,
political and other factors. The Fund and its investors are not protected from
such losses by the investment manager. Therefore, investors who cannot accept
this risk should not invest in shares of the Fund.

To ensure the highest quality of service, telephone calls to or from our service
departments may be monitored, recorded and accessed. These calls can be
identified by the presence of a regular beeping tone.

TLGIM S2007 04/07

ITEM 2. CODE OF ETHICS.

(a) The Registrant has adopted a code of ethics that applies to its principal
executive officers and principal financial and accounting officer.

(d) N/A

(f) Pursuant to Item 12(a)(1), the Registrant is attaching as an exhibit a
copy of its code of ethics that applies to its principal executive
officers and principal financial and accounting officer.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

(a) (1) The Registrant has an audit committee financial expert serving on
its audit committee.

(2) The audit committee financial experts are David W. Niemiec and Frank
A. Olson, they are "independent" as defined under the relevant
Securities and Exchange Commission Rules and Releases.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. N/A

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Members of the Audit Committee are: Frank J. Crothers, David W. Niemiec,
Frank A. Olson and Constantine D. Tseretopoulos.

ITEM 6. SCHEDULE OF INVESTMENTS. N/A

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.

The board of trustees of the Fund has delegated the authority to vote proxies
related to the portfolio securities held by the Fund to the Fund's manager
Franklin Advisers, Inc. in accordance with the Proxy Voting Policies and
Procedures (Policies) adopted by the manager.

The manager has delegated its administrative duties with respect to the voting
of proxies to the Proxy Group within Franklin Templeton Companies, LLC (Proxy
Group), an affiliate and wholly owned subsidiary of Franklin Resources, Inc. All
proxies received by the Proxy Group will be voted based upon the manager's
instructions and/or policies.

To assist it in analyzing proxies, the manager subscribes to Institutional
Shareholder Services (ISS), an unaffiliated third party corporate governance
research service that provides in-depth analyses of shareholder meeting agendas,
vote recommendations, recordkeeping and vote disclosure services. In addition,
the manager subscribes to Glass, Lewis & Co., LLC (Glass Lewis), an unaffiliated
third party analytical research firm, to receive analyses and vote
recommendations on the shareholder meetings of publicly held U.S. companies.
Although ISS' and/or Glass Lewis' analyses are thoroughly reviewed and
considered in making a final voting decision, the manager does not consider
recommendations from ISS, Glass Lewis or any other third party to be
determinative of the manager's ultimate decision. The manager votes proxies
solely in the interests of the Fund and its shareholders. As a matter of policy,
the officers, directors/trustees and employees of the Fund, the manager and the
Proxy Group will not be influenced by outside sources whose interests conflict
with the interests of the Fund and its shareholders. Efforts are made to resolve
all conflicts in the interests of the manager's clients. Material conflicts of
interest are identified by the Proxy Group based upon analyses of client, broker
and vendor lists, information periodically gathered from directors and officers,
and information derived from other sources, including public filings. In
situations where a material conflict of interest is identified, the Proxy Group
will refer the matter, along with the recommended course of action by the
manager to an interdepartmental Proxy Review Committee (which may include
portfolio managers and/or research analysts employed by the manager), for
evaluation and voting instructions. The Proxy Review Committee may defer to the
voting recommendation of ISS, Glass Lewis or those of another independent third
party provider of proxy services; or send the proxy directly to the Fund with a
recommendation regarding the vote for approval. Where the Proxy Review Committee
refers a matter to the Fund, it may rely upon the instructions of a
representative of the Fund, such as the board of trustees or a committee of the
board.

The recommendation of management on any issue is a factor which the manager
considers in determining how proxies should be voted, but is not determinative
of the manager's ultimate decision. As a matter of practice, the votes with
respect to most issues are cast in accordance with the position of the company's
management. Each issue, however, is considered on its own merits, and the
manager will not support the position of the company's management in any
situation where it deems that the ratification of management's position would
adversely affect the investment merits of owning that company's shares.

MANAGER'S PROXY VOTING POLICIES AND PRINCIPLES The manager has adopted general
proxy voting guidelines, which are summarized below. These guidelines are not an
exhaustive list of all the issues that may arise and the manager cannot
anticipate all future situations. In all cases, each proxy will be considered
based on the relevant facts and circumstances.

BOARD OF DIRECTORS. The manager supports an independent board of directors, and
prefers that key committees such as audit, nominating, and compensation
committees be comprised of independent directors. The manager will generally
vote against management efforts to classify a board and will generally support
proposals to declassify the board of directors. The manager may withhold votes
from directors who have attended less than 75% of meetings without a valid
reason. While generally in favor of separating Chairman and CEO positions, the
manager will review this issue as well as proposals to restore or provide for
cumulative voting on a case-by-case basis, taking into consideration factors
such as the company's corporate governance guidelines or provisions and
performance.

RATIFICATION OF AUDITORS OF PORTFOLIO COMPANIES. In light of several high
profile accounting scandals, the manager will closely scrutinize the role and
performance of auditors. On a case-by-case basis, the manager will examine
proposals relating to non-audit relationships and non-audit fees. The manager
will also consider, on a case-by-case basis, proposals to rotate auditors, and
will vote against the ratification of auditors when there is clear and
compelling evidence of accounting irregularities or negligence.

MANAGEMENT AND DIRECTOR COMPENSATION. A company's equity-based compensation plan
should be in alignment with its shareholders' long-term interests. The manager
believes that executive compensation should be directly linked to the
performance of the company. The manager evaluates plans on a case-by-case basis
by considering several factors to determine whether the plan is fair and
reasonable, including the ISS quantitative model utilized to assess such plans
and/or the Glass Lewis evaluation of the plans. The manager will generally
oppose plans that have the potential to be excessively dilutive, and will almost
always oppose plans that are structured to allow the repricing of underwater
options, or plans that have an automatic share replenishment "evergreen"
feature. The manager will generally support employee stock option plans in which
the purchase price is at least 85% of fair market value, and when potential
dilution is 10% or less.

Severance compensation arrangements will be reviewed on a case-by-case basis,
although the manager will generally oppose "golden parachutes" that are
considered to be excessive. The manager will normally support proposals that
require a percentage of directors' compensation to be in the form of common
stock, as it aligns their interests with those of shareholders. The manager will
review on a case-by-case basis any shareholder proposals to adopt policies on
expensing stock option plans.

ANTI-TAKEOVER MECHANISMS AND RELATED ISSUES. The manager generally opposes
anti-takeover measures since they tend to reduce shareholder rights. On
occasion, the manager may vote with management when the research analyst has
concluded that the proposal is not onerous and would not harm the Fund or its
shareholders' interests. The manager generally supports proposals that require
shareholder rights' plans ("poison pills") to be subject to a shareholder vote
and will closely evaluate such plans on a case-by-case basis to determine
whether or not they warrant support. The manager will generally vote against any
proposal to issue stock that has unequal or subordinate voting rights. The
manager generally opposes any supermajority voting requirements as well as the
payment of "greenmail." The manager generally supports "fair price" provisions
and confidential voting.

CHANGES TO CAPITAL STRUCTURE. The manager will review, on a case-by-case basis,
proposals by companies to increase authorized shares and the purpose for the
increase and proposals seeking preemptive rights. The manager will generally not
vote in favor of dual-class capital structures to increase the number of
authorized shares where that class of stock would have superior voting rights.
The manager will generally vote in favor of the issuance of preferred stock in
cases where the company specifies the voting, dividend, conversion and other
rights of such stock and the terms of the preferred stock issuance are deemed
reasonable.

MERGERS AND CORPORATE RESTRUCTURING. Mergers and acquisitions will be subject to
careful review by the research analyst to determine whether each will be
beneficial to shareholders. The manager will analyze various economic and
strategic factors in making the final decision on a merger or acquisition.
Corporate restructuring and reincorporation proposals are also subject to a
thorough examination on a case-by-case basis.

SOCIAL AND CORPORATE POLICY ISSUES. The manager will generally give management
discretion with regard to social, environmental and ethical issues, although the
manager may vote in favor of those that are believed to have significant
economic benefits or implications for the Fund and its shareholders.

GLOBAL CORPORATE GOVERNANCE. Many of the tenets discussed above are applied to
proxy voting decisions for international companies. However, the manager must be
more flexible in these instances and must be mindful of the varied market
practices of each region.

The manager will attempt to process every proxy it receives for all domestic and
foreign issuers. However, there may be situations in which the manager cannot
process proxies, for example, where a meeting notice was received too late, or
sell orders preclude the ability to vote. If a security is on loan, the manager
may determine that it is not in the best interests of the Fund to recall the
security for voting purposes. Also, the manager may abstain from voting under
certain circumstances or vote against items such as "Other Business" when the
manager is not given adequate information from the company.

Shareholders may view the complete Policies online at franklintempleton.com.
Alternatively, shareholders may request copies of the Policies free of charge by
calling the Proxy Group collect at 1-954-527-7678 or by sending a written
request to: Franklin Templeton Companies, LLC, 500 East Broward Boulevard, Suite
1500, Fort Lauderdale, FL 33394, Attention: Proxy Group. Copies of the Fund's
proxy voting records are available online at franklintempleton.com and posted on
the SEC website at www.sec.gov and reflect the 12-month period beginning July 1,
2005, and ending June 30, 2006.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. N/A

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS. N/A

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no changes to the procedures by which shareholders may recommend
nominees to the Registrant's Board of Trustees that would require disclosure
herein.

ITEM 11. CONTROLS AND PROCEDURES.

(A) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 is recorded,
processed, summarized and reported within the periods specified in the rules and
forms of the Securities and Exchange Commission. Such information is accumulated
and communicated to the Registrant's management, including its principal
executive officer and principal financial officer, as appropriate, to allow
timely decisions regarding required disclosure. The Registrant's management,
including the principal executive officer and the principal financial officer,
recognizes that any set of controls and procedures, no matter how well designed
and operated, can provide only reasonable assurance of achieving the desired
control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form
N-CSR, the Registrant had carried out an evaluation, under the supervision and
with the participation of the Registrant's management, including the
Registrant's principal executive officer and the Registrant's principal
financial officer, of the effectiveness of the design and operation of the
Registrant's disclosure controls and procedures. Based on such evaluation, the
Registrant's principal executive officer and principal financial officer
concluded that the Registrant's disclosure controls and procedures are
effective.

(B) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the
Registrant's internal controls or in other factors that could significantly
affect the internal controls subsequent to the date of their evaluation in
connection with the preparation of this Shareholder Report on Form N-CSR.

ITEM 12. EXHIBITS.

(a)(1) Code of Ethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and
Galen G. Vetter, Chief Financial Officer

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of
Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and
Galen G. Vetter, Chief Financial Officer

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

TEMPLETON GLOBAL INCOME FUND

By /s/JIMMY D. GAMBILL
---------------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date: April 26, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By /s/JIMMY D. GAMBILL
--------------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date: April 26, 2007

By /s/GALEN G. VETTER
---------------------------
Galen G. Vetter
Chief Financial Officer
Date: April 26, 2007