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


                               FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934

For the quarterly period ended        March 31, 2000

                                            OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934

For the transition period from              to


   Commission file number                                0-19244

                              Krupp Government Income Trust


       Massachusetts                                    04-3089272
(State or other jurisdiction                 (IRS employer identification no.)
of incorporation or organization)

One Beacon Street, Boston, Massachusetts                   02108
(Address of principal executive offices)                 (Zip Code)


                                    (617) 523-0066
                 (Registrant's telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

Yes   X    No

<PAGE>

                                    Part I.  FINANCIAL INFORMATION

Item 1.  FINANCIAL STATEMENTS

This Form 10-Q contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934.  Actual  results could differ  materially  from those  projected in the
forward-looking  statements as a result of a number of factors,  including those
identified herein.
<TABLE>
<CAPTION>

                                     KRUPP GOVERNMENT INCOME TRUST

                                             BALANCE SHEETS

                                                 ASSETS
                                                                                 March 31,              December 31,
                                                                                   2000                    1999
Participating Insured Mortgage Investments
 ("PIMIs") (Note 2):
<S>                                                                          <C>                    <C>
 Insured Mortgages                                                           $    60,038,036        $   60,129,492
 Additional Loans, net of impairment provision
    of $2,162,618                                                                  8,350,990             8,350,990
Participating Insured Mortgages ("PIMs")(Note 2)                                  47,225,061            47,331,673
Mortgage-Backed Securities and insured mortgage loan ("MBS") (Note 3)             17,137,254            17,495,423

           Total mortgage investments                                            132,751,341           133,307,578

Cash and cash equivalents                                                          4,853,798             4,627,499
Interest receivable and other assets                                                 950,186               973,491
Prepaid acquisition fees and expenses, net
 of accumulated amortization of $6,277,745
 and $6,089,755, respectively                                                      2,055,716             2,243,706
Prepaid participation servicing fees, net of
 accumulated amortization of $1,903,878 and
 $1,834,434, respectively                                                            873,871               943,315

           Total assets                                                      $   141,484,912        $142,095,589


                                                      LIABILITIES AND SHAREHOLDERS' EQUITY


Deferred income on Additional Loans (Note 5)                                 $     3,870,988        $    3,918,021
Other liabilities                                                                     16,933                25,025

           Total liabilities                                                       3,887,921             3,943,046

Shareholders' equity (Note 4):
   Common stock, no par value; 17,510,000
     Shares authorized; 15,053,135 Shares
     issued and outstanding                                                      137,389,653           137,921,227
   Accumulated comprehensive income                                                  207,338               231,316

           Total Shareholders' equity                                            137,596,991           138,152,543

           Total liabilities and Shareholders' equity                        $   141,484,912        $142,095,589
</TABLE>


                            The accompanying notes are an integral
                                part of the financial statements.

<PAGE>
<TABLE>
<CAPTION>




                                    KRUPP GOVERNMENT INCOME TRUST

                             STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


                                                                                     For the Three Months
                                                                                        Ended March 31,
                                                                                  2000                 1999
Revenues:
    Interest income - PIMs and PIMIs:
<S>                                                                          <C>                  <C>
       Basic interest                                                        $  2,018,044         $  2,345,840
       Additional loan interest                                                   141,413              108,267
       Participation income                                                        76,968               -
    Interest income - MBS                                                         353,406              410,032
    Interest income cash and cash equivalents                                      67,483              108,030

         Total revenues                                                         2,657,314            2,972,169

Expenses:
   Asset management fee to an affiliate                                           251,900              289,602
   Expense reimbursements to affiliates                                            55,841               18,215
   Amortization of prepaid fees and expenses                                      257,434              295,866
   General and administrative                                                      64,680               62,521

         Total expenses                                                           629,855              666,204

Net income                                                                      2,027,459            2,305,965

Other comprehensive income:
     Net change in unrealized gain on MBS                                         (23,978)             (51,533)

Total comprehensive income                                                  $   2,003,481        $   2,254,432

Basic earnings per Share                                                    $         .13        $              .15

Weighted average Shares outstanding                                            15,053,135           15,053,135

</TABLE>




                                      The accompanying notes are an integral
                                         part of the financial statements.
<PAGE>

<TABLE>
<CAPTION>



                                           KRUPP GOVERNMENT INCOME TRUST

                                             STATEMENTS OF CASH FLOWS


                                                                                    For the Three Months
                                                                                       Ended March 31,

                                                                                    2000              1999
Operating activities:
<S>                                                                           <C>                 <C>
   Net income                                                                 $  2,027,459        $ 2,305,965
   Adjustments to reconcile net income to
   net cash provided by operating activities:
      Amortization of (discounts) and premium                                       (1,450)               351
Amortization   of   prepaid
fees and expenses                                                                  257,434            295,866
      Changes in assets and liabilities:
         Decrease (increase) in interest receivable and
           other assets                                                             23,305            (14,111)
         (Decrease) increase in deferred income
           on Additional Loans                                                     (47,033)            79,842
         (Decrease) increase in other liabilities                                   (8,092)           669,350

               Net cash provided by operating activities                         2,251,623          3,337,263

Investing activities:
    Principal collections on MBS                                                   335,641          1,493,711
    Principal collections on PIMs and Insured
       Mortgages                                                                   198,068            202,752


               Net cash provided by investing activities                           533,709          1,696,463


Financing activity:
   Dividends                                                                    (2,559,033)        (4,892,273)

Net increase in cash and cash equivalents                                          226,299            141,453

Cash and cash equivalents, beginning of period                                   4,627,499          9,004,397

Cash and cash equivalents, end of period                                      $  4,853,798       $  9,145,850

Non cash activities:
     Decrease in Fair Value of MBS                                            $    (23,978)      $    (51,533)

</TABLE>



                                   The accompanying notes are an integral
                                      part of the financial statements.
<PAGE>






                                       KRUPP GOVERNMENT INCOME TRUST

                                       NOTES TO FINANCIAL STATEMENTS


1.    Accounting Policies

Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have been condensed or omitted in this report on Form 10-Q pursuant to the Rules
and  Regulations  of the  Securities and Exchange  Commission.  However,  in the
opinion of Berkshire  Mortgage  Advisors Limited  Partnership (the "Advisor") of
Krupp Government Income Trust (the "Trust"),  the disclosures  contained in this
report are adequate to make the information presented not misleading.  See Notes
to Financial Statements in the Trust's Form 10-K for the year ended December 31,
1999 for  additional  information  relevant to significant  accounting  policies
followed by the Trust.

In the opinion of the Advisor of the Trust, the accompanying unaudited financial
statements  reflect  all  adjustments   (consisting  of  only  normal  recurring
accruals) necessary to present fairly the Trust's financial position as of March
31,  2000 and the  results  of its  operations  and its cash flows for the three
months ended March 31, 2000 and 1999.

The  results of  operations  for the three  months  ended March 31, 2000 are not
necessarily  indicative  of the results which may be expected for the full year.
See Management's  Discussion and Analysis of Financial  Condition and Results of
Operations included in this report.

2.    PIMs and PIMIs

At March 31, 2000, the Trust's PIMs and PIMIs have a fair value of  $114,055,152
and gross unrealized  gains and losses of $229,329 and $1,788,264  respectively.
The PIMs and PIMIs have maturities  ranging from 2002 to 2034. At March 31, 2000
there are no insured  mortgage  loans  within  the  Trust's  portfolio  that are
delinquent of principal or interest.

The Advisor  believes that the  impairment  provision of $2,162,618 is adequate,
based on its analysis of property operations underlying the Additional Loans.

3.    MBS

At  March  31,  2000,  the  Trust's  MBS  portfolio  has an  amortized  cost  of
$12,047,695   and   unrealized   gains  and  losses  of  $233,241  and  $25,903,
respectively.  At March 31,  2000,  the  Trust's  FHA  insured  mortgage  has an
amortized cost of $4,882,221.  The MBS portfolio  including the insured mortgage
has maturities ranging from 2008 to 2035.

4.    Changes in Shareholders' Equity
<TABLE>
<CAPTION>

     A summary of changes in  shareholders'  equity for three months ended March
31, 2000 is as follows:

                                                                               Accumulated         Total
                                          Common             Retained         Comprehensive     Shareholders'
                                          Stock              Earnings            Income            Equity
<S>                                  <C>                   <C>               <C>              <C>
Balance at December 31, 1999         $  137,921,227        $    -            $  231,316       $  138,152,543

Net income                                  -               2,027,459             -                2,027,459

Dividends                                  (531,574)       (2,027,459)            -               (2,559,033)

Change in unrealized
 loss on MBS                                -                   -               (23,978)             (23,978)

Balance at March 31, 2000             $ 137,389,653        $    -            $  207,338       $  137,596,991

</TABLE>

                                               Continued

<PAGE>




                                      KRUPP GOVERNMENT INCOME TRUST

                                NOTES TO FINANCIAL STATEMENTS, continued
                                             _____________



5. Related Party Transactions

The Trust  received  $86,609 of  Additional  Loan Interest that was due from The
Seasons  during the first  quarter of 2000 in April 2000.  For the three  months
ended March 31, 1999,  the Trust  received  $86,609 of Additional  Loan Interest
from The Seasons.

<PAGE>

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

Liquidity and Capital Resources

At  March  31,  2000  the  Trust  had  liquidity  consisting  of cash  and  cash
equivalents,  of approximately $4.9 million as well as the cash inflows provided
by PIMs,  PIMIs,  MBS,  cash and cash  equivalents.  The Trust may also  receive
additional cash flow from the participation  features of its PIMs and PIMIs. The
Trust  anticipates that these sources will be adequate to provide the Trust with
sufficient  liquidity to meet its obligations,  including providing dividends to
its investors.

The most  significant  demand on the Trust's  liquidity is quarterly  dividends,
paid to investors of  approximately  $2.6  million,  and special  distributions.
Funds for dividends come from interest income received on PIMs, PIMIs, MBS, cash
and cash  equivalents  net of operating  expenses and the principal  collections
received on PIMs,  PIMIs and MBS. The portion of dividends funded from principal
collections reduces the capital resources of the Trust. As the capital resources
of the Trust  decrease,  the total cash  flows to the Trust  will also  decrease
which may result in periodic adjustments to the dividends paid to the investors.

The Advisor  periodically  reviews the  dividend  rate to  determine  whether an
adjustment  is  necessary  based on  projected  future cash  flows.  The current
dividend  rate is $.17 per Share per quarter.  In general,  the Advisor tries to
set a dividend  rate that  provides for level  quarterly  distributions.  To the
extent  quarterly  dividends  do  not  fully  utilize  the  cash  available  for
distribution  and cash  balances  increase,  the Advisor may adjust the dividend
rate or distribute such funds through a special distribution.

The Trust's  PIMIs funded the  construction  or  significant  rehabilitation  of
multifamily  housing,  which  requires  time to  achieve  stabilized  operations
following the  completion  of the work.  With this in mind,  the Trust  required
those  borrowers to escrow a portion of the Additional Loan proceeds in reserves
so funds would be available for the PIMI  Additional  Loan  payments  during the
construction  and lease-up  periods.  As these reserves  become  depleted,  full
payment of the Additional Loan interest becomes  primarily  dependent on whether
the underlying  property generates  sufficient  operating cash flow to make such
payments.

In addition to providing  guaranteed or insured  monthly  principal and interest
payments,  the Trust's investments in PIMs and PIMIs also may provide additional
income through the interest on the Additional  Loan portion of the PIMIs as well
as  participation  income  based on  operating  cash flow and an increase in the
value realized upon the sale or refinance of the underlying properties. However,
these payments are neither guaranteed nor insured and depend upon the successful
operations of the underlying properties.

The Trust received the first installment of Additional Loan interest from one of
its PIMI investments,  Red Run, during the first quarter.  The first installment
for The Seasons  was  received  subsequent  to the end of the quarter due to HUD
financial  reporting  requirements.  The Trust's  three other PIMI  investments,
Lifestyles,  Mountain View and Windward  Lakes operate under workout  agreements
with the Trust that require  Additional  Loan interest  payments only if Surplus
Cash, as defined by HUD, is generated through property operations. None of these
three properties  generated Surplus Cash as of December 31, 1999;  consequently,
the Trust will not receive any Additional Loan interest during the first half of
2000.

The Trust received  participation  income from two of its investments during the
first quarter.  Waterford  Townhomes,  one of the Trust's PIM investments,  paid
$42,731 of participation income based on 1998 operating results which was billed
in the fourth  quarter of 1999.  Red Run, one of the Trust's  PIMI  investments,
paid  $33,630  of  participation   income  based  on,  1999  operating  results.
Subsequent to the end of the first quarter,  the Trust also received  $68,762 of
participation  income based on the second half of 1999 operating results for The
Seasons.  The Trust expects to collect  participation income based on successful
1999 operating results from two other PIM investments later during 2000, Lincoln
Green and Waterford Townhomes. Three other properties,  Rivergreens I, Mill Pond
I and  Riverview,  are  occupied  in the low 90% range and  generate  sufficient
revenue to meet all cash requirements for operations and maintenance, but do not
generate Surplus Cash under HUD's definition for payment of participation income
to the Trust.

<PAGE>

As mentioned above,  three properties  operate under workout agreements with the
Trust.  Windward Lakes' operating results deteriorated during 1995 and 1996, and
in early 1997 the independent  Trustees  approved a workout with the borrower of
the  Windward  Lakes PIMI,  an  affiliate  of the  Advisor of the Trust.  In the
workout,  the Trust agreed to reduce the  effective  basic  interest rate on the
insured first mortgage by 2% per annum for 1997 and 1% per annum for 1998,  1999
and 2000. The borrower made an equity  contribution  of $133,036 to the property
and  agreed  to cap the  annual  management  fee paid to an  affiliate  at 3% of
revenues.  The Trust's participation in current operations is 50% of any Surplus
Cash as determined  under HUD  guidelines,  and the Additional  Loan interest is
payable out of its share of Surplus Cash.  Any unpaid  Additional  Loan interest
accrues at 7.5% per annum.  When the property is sold or  refinanced,  the Trust
will receive 50% of any net proceeds  remaining  after  repayment of the insured
mortgage,  the  Additional  Loan,  the interest rate relief,  accrued and unpaid
Additional  Loan  interest  and the  Borrower's  equity up to the point that the
Trust has received a  cumulative,  non-compounded  10%  preferred  return on its
investment in the PIMI.

Lifestyles  operating results deteriorated during 1995, and the Trust approved a
two-year  workout  that  effectively  reduced the  interest  rate on the insured
mortgage by 1%. When that  workout  ended in 1997,  the property was not able to
generate  sufficient  revenues to maintain the property and service the original
interest rate.  Consequently,  the borrower on the Lifestyles  PIMI defaulted on
its May 1, 1998 debt service  payment on the insured first  mortgage.  The Trust
agreed to a new  workout  that runs  through  2007.  Under its terms,  the Trust
agreed to reduce the effective  interest  rate on the insured first  mortgage by
1.75%  retroactively  for 1998 to clear the default,  by 1.75% for 1999,  and by
1.5% each year thereafter until the property is sold or refinanced. The borrower
made a $550,000 equity contribution,  which has been escrowed, for the exclusive
purpose of correcting  deferred  maintenance and making capital  improvements to
the property.  Any Surplus Cash that is generated by property operations will be
split evenly  between the Trust and the  borrower.  When the property is sold or
refinanced,  the first  $1,100,000 of any proceeds  remaining  after the insured
mortgage is paid off will be split 50% / 50%;  the next  $1,690,220  of proceeds
will be  split  75% to the  Trust  and 25% to the  borrower;  and any  remaining
proceeds will be split 50% / 50. The  borrower's new equity and the reduction in
the effective interest rate on the insured first mortgage will provide funds for
repairs  and  improvements  that  should help  reposition  Lifestyles  so it can
compete more  effectively for new residents and rental rates. As a result of the
factors  described  above,  the  Advisor  determined  that the  Additional  Loan
collateralized  by the Lifestyles  asset was impaired,  and the Trust recorded a
valuation allowance of $1,130,436 in the fourth quarter of 1998 and continues to
maintain that allowance.

Mountain  View is similar to  Lifestyles  with  respect  to  competitive  market
conditions.  In June 1999, the Trust approved a second workout that runs through
2004. Under its terms, the Trust agreed to reduce the effective interest rate on
the  insured  first  mortgage  by 1.25%  retroactively  for  1999 and each  year
thereafter  until  the  property  is  sold  or  refinanced,  and to  change  the
participation  terms.  The workout  eliminated  the  preferred  return  feature,
forgave $288,580 of previous accruals of Additional Loan interest related to the
first workout,  and changed the Trust's  participation in Surplus Cash generated
by the  property.  The Trust will  receive 75% of the first  $130,667 of Surplus
Cash and 50% of any remaining  Surplus Cash on an annual basis to pay Additional
Loan interest.  Unpaid  Additional  Loan interest  related to the second workout
will  accrue  and be  payable if there are  sufficient  proceeds  from a sale or
refinancing of the property.  In addition,  the borrower  repaid $153,600 of the
Additional  Loan and  funded  approximately  $54,000 to a reserve  for  property
improvements. As a result of the factors described above, the Advisor determined
that the Additional Loan  collateralized by the Mountain View asset was impaired
and has recorded a valuation  allowance of $1,032,272  and continues to maintain
that allowance.

Whether the  operating  performance  at any of the  properties  mentioned  above
provide  sufficient  cash flow from operations to pay either the Additional Loan
interest  or  participation  income  will  depend on factors  that the Trust has
little  or no  control  over.  Should  the  properties  be  unable  to  generate
sufficient  cash flow to pay the Additional  Loan interest,  it would reduce the
Trust's  distributable  cash flow and could  affect the value of the  Additional
Loan collateral.

There are  contractual  restrictions  on the  repayment  of the PIMs and  PIMIs.
During the first five years of the  investment,  borrowers are  prohibited  from
repayment.  During the  second  five  years,  the PIM  borrowers  can prepay the
insured  first  mortgage  by paying the greater of a  prepayment  premium or the
participation due at the time of the prepayment.  Similarly,  the PIMI borrowers
can prepay the insured first mortgage and the Additional  Loan by satisfying the
Preferred Return obligation. The participation features and Additional Loans are
neither  insured nor  guaranteed.  If the  prepayment of the PIM or PIMI results
from the foreclosure on the underlying property or an insurance claim, the Trust
would probably not receive any participation income or any amounts due under the
Additional Loan.

The Trust has the option to call certain PIMs and all the PIMIs by  accelerating
their  maturity if the loans are not  prepaid by the tenth year after  permanent
funding. The Advisor will determine the merits of exercising the call option for
each PIM and PIMI as economic conditions warrant.  Such factors as the condition
of the asset,  local  market  conditions,  the  interest  rate  environment  and
available financing will have an impact on these decisions.


Results of Operations

The  net  income  of  the  Trust  for  the  first  quarter  2000   decreased  by
approximately $279,000 as compared to the first quarter of 1999 due primarily to
decreases  in  basic  interest  income  on PIMs and  PIMIs.  This  decrease  was
primarily  the result of the payoff of the Audubon  Villas PIMI during the third
quarter of 1999.

<PAGE>


Item 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Assessment of Credit Risk

The Trust's  investments in insured  mortgages and MBS are guaranteed or insured
by  Fannie  Mae,  the  Federal  Home  Loan  Mortgage  Corporation  (FHLMC),  the
Government  National Mortgage  Association  (GNMA) and the Department of Housing
and Urban  Development (HUD) and therefore the certainty of their cash flows and
the  risk  of   material   loss  of  the   amounts   invested   depends  on  the
creditworthiness of these entities.

Fannie  Mae  is  a  federally  chartered  private  corporation  that  guarantees
obligations  originated  under  its  programs.  FHLMC is a  federally  chartered
corporation  that guarantees  obligations  originated  under its programs and is
wholly-owned  by the twelve Federal Home Loan Banks.  These  obligations are not
guaranteed  by the U.S.  Government  or the Federal  Home Loan Bank Board.  GNMA
guarantees  the full and timely  payment of principal and basic  interest on the
securities it issues,  which represents  interest in pooled mortgages insured by
HUD. Obligations insured by HUD, an agency of the U.S. Government, are backed by
the full faith and credit of the U.S. Government.

The Trust's  Additional Loans have similar risks as those associated with higher
risk debt  instruments,  including:  reliance on the owner's  operating  skills,
ability to maintain  occupancy levels,  control operating  expenses,  ability to
maintain the properties and obtain adequate insurance coverage.  Operations also
may be effected by adverse changes in general economic conditions, adverse local
conditions, and changes in governmental regulations, real estate zoning laws, or
tax laws,  and other  circumstances  over which the Trust may have  little or no
control.

The Trust includes in cash and cash  equivalents  approximately  $4.5 million of
Agency paper.


Interest Rate Risk

The Trust's primary market risk exposure is to interest rate risk,  which can be
defined as the  exposure  of the Trust's  net  income,  comprehensive  income or
financial  condition to adverse  movements in interest rates. At March 31, 2000,
the Trust's PIMs, PIMIs and MBS comprise the majority of the Trust's assets.  As
such,  decreases in interest  rates may accelerate the prepayment of the Trust's
investments.  The Trust does not utilize any derivatives or other instruments to
manage this risk as the Trust plans to hold all of its  investments  to expected
maturity.

The Trust  monitors  prepayments  and considers  prepayment  trends,  as well as
distribution  requirements of the Trust,  when setting regular  dividend policy.
For MBS, the fund forecasts prepayments based on trends in similar securities as
reported by  statistical  reporting  entities  such as  Bloomberg.  For PIMs and
PIMIs, the Trust incorporates prepayment assumptions into planning as individual
properties notify the Trust of the intent to prepay or as they mature.


<PAGE>

                             KRUPP GOVERNMENT INCOME TRUST

                              PART II - OTHER INFORMATION




Item 1.       Legal Proceedings
              Response:  None

Item 2.       Changes in Securities
              Response:  None

Item 3.       Defaults upon Senior Securities
              Response:  None

Item 4.       Submission of Matters to a Vote of Security Holders
              Response:  None

Item 5.       Other Information
              Response:  None

Item 6.       Exhibits and Reports on Form 8-K
              Response:  None


<PAGE>


                                     SIGNATURE



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



                          Krupp Government Income Trust
                                   (Registrant)



                          BY:    /s/ Robert A. Barrows
                                 Robert A. Barrows
                                 Treasurer and Chief Accounting Officer
                                 of Krupp Government Income Trust



Date:   April 28, 2000