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


                                       FORM 10-Q

(Mark One)

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

For the quarterly period ended         September 30, 1999

                                           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>

                              KRUPP GOVERNMENT INCOME TRUST

                                      BALANCE SHEETS
<CAPTION>


                                          ASSETS
                                                                              September 30,            December 31,
                                                                                   1999                    1998
Participating Insured Mortgage Investments
 ("PIMIs") (Note 2):
<S>                                                                         <C>                    <C>
 Insured Mortgages                                                          $   60,219,084         $    75,386,460
 Additional loans, net of impairment provision of $2,114,346                     8,399,262              11,243,862
Participating Insured Mortgages ("PIMs")
 (Note 2)                                                                       47,436,190              47,737,583
Mortgage-Backed Securities and insured
 mortgage ("MBS") (Note 3)                                                      18,335,257              22,132,858

           Total mortgage investments                                          134,389,793             156,500,763

Cash and cash equivalents                                                        6,603,696               9,004,397
Interest receivable and other assets                                               868,179               1,057,365
Prepaid acquisition fees and expenses, net
 of accumulated amortization of $ 7,139,099
 and $ 6,125,191, respectively                                                   2,431,697               3,445,605
Prepaid participation servicing fees, net of
 accumulated amortization of $ 2,148,066 and
 $ 1,776,625, respectively                                                       1,042,118               1,413,559

           Total assets                                                     $  145,335,483         $   171,421,689

                                          LIABILITIES AND SHAREHOLDERS' EQUITY

Deferred income on Additional Loans
   (Notes 2 and 5)                                                          $    4,025,450         $     5,773,669
Other liabilities                                                                   74,750                  33,230

           Total liabilities                                                     4,100,200               5,806,899

Shareholders' equity (Note 4):
   Common stock, no par value; 17,510,000
   Shares authorized; 15,053,135 Shares
   issued and outstanding                                                      140,731,258             164,742,014

  Accumulated comprehensive income                                                 504,025                 872,776

           Total Shareholders' equity                                          141,235,283             165,614,790

           Total liabilities and Shareholders'
             equity                                                         $  145,335,483         $   171,421,689

</TABLE>


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

<PAGE>
<TABLE>

                                              KRUPP GOVERNMENT INCOME TRUST

                                                  STATEMENTS OF INCOME

<CAPTION>

                                                    For the Three Months                 For the Nine Months
                                                     Ended September 30,                 Ended September 30,

                                                   1999             1998               1999            1998

Revenues:
   Interest income - PIMs
    and PIMIs:
<S>                                         <C>               <C>                 <C>             <C>
    Basic interest                          $  2,127,439      $  2,400,678        $  6,761,546    $  8,412,360
      Additional loan interest                 2,128,724           196,970           2,316,389       3,059,286
      Participation income                     2,193,485           151,417           2,268,505       5,049,492
   Interest income - MBS                         371,727           466,103           1,172,022       1,484,351
   Other interest income                         178,998           557,286             384,162         942,923

         Total revenues                        7,000,373         3,772,454          12,902,624      18,948,412

Expenses:
   Asset management fee
    to an affiliate                              267,621           301,642             847,908       1,032,439
   Expense reimbursements
    to affiliates                                 67,479            69,522             153,173         137,643
   Amortization of prepaid
    fees and expenses                            793,618         1,064,119           1,385,349       2,702,839
   General and administrative                     71,201           112,730             281,055         336,779

         Total expenses                        1,199,919         1,548,013           2,667,485       4,209,700

Net income                                     5,800,454         2,224,441          10,235,139      14,738,712

Other comprehensive income:
   Net change in unrealized
      gain on MBS                                (85,354)          171,259            (368,751)        106,974

Total comprehensive income                  $  5,715,100      $  2,395,700        $  9,866,388    $ 14,845,686

Earning per Share                           $        .39      $        .15        $        .68    $        .98

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

</TABLE>



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

                                           KRUPP GOVERNMENT INCOME TRUST

                                             STATEMENTS OF CASH FLOWS

<CAPTION>


                                                                                         For the Nine Months
                                                                                          Ended September 30,

                                                                                      1999                  1998
Operating activities:
<S>                                                                             <C>                 <C>
   Net income                                                                   $   10,235,139      $   14,738,712
   Adjustments to reconcile net income to
    net cash provided by operating activities:
      Amortization of net premium                                                        2,933               -
      Amortization of prepaid fees and expenses                                      1,385,349           2,702,839
      Changes in assets and liabilities:
         Decrease in interest receivable and other
          assets                                                                       189,186             247,162
         Increase (decrease) in other liabilities                                       41,520                (444)

               Net cash provided by operating activities                            11,854,127          17,688,269

Investing activities:
   Principal collections on MBS                                                      3,425,917           3,550,629
   Principal collections on PIMs                                                       606,812             656,518
   PIM prepayment                                                                   14,861,957          32,603,506
Collections on Additional Loans                                                      2,844,600           5,850,900
Decrease in deferred income on Additional Loans                                     (1,748,219)         (2,183,260)

               Net cash provided by investing activities                            19,991,067          40,478,293

Financing activity:
   Dividends                                                                       (34,245,895)        (57,698,688)

Net (decrease) increase in cash and cash equivalents                                (2,400,701)            467,874

Cash and cash equivalents, beginning of period                                       9,004,397           9,749,804

Cash and cash equivalents, end of period                                        $    6,603,696      $   10,217,678

</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"),  the
Advisor  to  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, 1998 for additional  information relevant to significant
accounting policies followed by the Trust.

     In the  opinion  of  the  Advisor,  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
September  30,  1999,  its results of  operations  for the three and nine months
ended  September 30, 1999 and 1998, and its cash flows for the nine months ended
September 30, 1999 and 1998.

     The results of operations for the three and nine months ended September 30,
1999 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

     In June 1999, the Trust entered into a second  modification  agreement (the
"Agreement")  with the borrowers of the Mountain View  Apartments  PIMI reducing
the interest rate on the insured  mortgage by 1.25% per annum beginning  January
1, 1999 and continuing  through December 31, 2004 and changing the participation
feature.  The Agreement  eliminated  the Preferred  Interest  required under the
Additional  Loan and  changed  the Trust's  participation  in the  surplus  cash
generated by property.  Under the  Agreement,  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 the base interest on the Additional Loan.  Unpaid Additional
Loan base interest will accrue and be payable if there are  sufficient  proceeds
from a sale or  refinancing  of the  property  except that  $288,580 of existing
accruals  related to the  Additional  Loan had been forgiven.  In addition,  the
borrower repaid $153,600 of the Additional Loan and funded approximately $54,000
to a reserve for property improvements.

     During the third  quarter,  the Trust  received a prepayment of the Audubon
Villas PIMI including the first mortgage with a remaining  principal  balance of
$14,861,957,  the  Additional  Loan of $2,691,000  and  participation  income of
$1,966,901.  Also,  $1,962,261 was recognized as Additional Loan interest income
which was  previously  recorded  as deferred  income.  On August 18,  1999,  the
Advisor  declared  a  special  dividend  of  $1.30  per  share  that was paid on
September 17, 1999 from the payoff of the mortgage on Audubon Villas PIMI.

     At  September  30,  1999,  the  Trust's  PIMs and PIMIs had a fair value of
$116,428,374  and gross unrealized gains and losses of $1,432,635 and $1,058,797
respectively.  The PIMs and PIMIs have maturities  ranging from 2002 to 2034. At
September 30, 1999, the Trust's six  participating  insured  mortgage loans were
not delinquent of principal and interest payments.

     Management believes that the impairment provision of $2,114,346 is adequate
based on its analysis of property operations underlying the Additional Loans.




                                  Continued


<PAGE>
<TABLE>

                         KRUPP GOVERNMENT INCOME TRUST

                    NOTES TO FINANCIAL STATEMENTS, Continued
<CAPTION>

3.    MBS

     At September 30, 1999,  the Trust's MBS portfolio had an amortized  cost of
approximately  $17,831,232  and  unrealized  gains and  losses of  $518,075  and
$14,050,  respectively.  The MBS portfolio has  maturities  ranging from 2008 to
2029.  At  September  30,  1999,  the  Trust's  insured  mortgage  loan  was not
delinquent of principal and interest payments.

4.    Changes in Shareholders' Equity

      A summary of changes in shareholders' equity for the nine months ended
      September 30, 1999 is as follows:

                                           Total                              Accumulated
                                          Common               Retained      Comprehensive        Shareholders'
                                           Stock               Earnings          Income              Equity

<S>                                   <C>                   <C>             <C>                 <C>
Balance at December 31, 1998          $  164,742,014        $     -         $     872,776       $  165,614,790

Net income                                   -                 10,235,139           -               10,235,139

Dividends                                (24,010,756)         (10,235,139)          -              (34,245,895)

Decrease in unrealized
 gain on MBS                                 -                    -              (368,751)            (368,751)

Balance at September 30, 1999         $  140,731,258        $     -         $     504,025        $   141,235,283
</TABLE>


5.    Related Party Transactions

     During the three and nine months ended September 30, 1999,  Additional Loan
interest  income of  $48,523  and  $225,156,  respectively,  was  received  from
affiliates of the Advisor.  During the three and nine months ended September 30,
1998, Additional Loan interest income of $45,623 and $218,841, respectively, was
received from affiliates of the Advisor.

     During the three and nine months ended  September  30, 1999,  participation
interest  income of  $78,479  and  $153,499,  respectively,  was  received  from
affiliates of the Advisor.  During the three and nine months ended September 30,
1998,  participation interest income of $66,707 and $93,457,  respectively,  was
received from affiliates of the Advisor.


<PAGE>

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

     Management's  Discussion and Analysis of Financial Condition and Results of
Operations  contains  forward-looking   statements  including  those  concerning
Management's  expectations regarding the future financial performance and future
events.   These   forward-looking   statements  involve   significant  risk  and
uncertainties,  including  those  described  herein.  Actual  results may differ
materially from those anticipated by such forward-looking statements.

Impact of the Year 2000 Issue

     The Advisor has  conducted an  assessment  of the Trust's core internal and
external computer  information systems and has taken the further necessary steps
to  understand  the nature and extent of the work  required  to make its systems
Year 2000 ready in those  situations  in which it is required to do so. The Year
2000 readiness issue concerns the inability of computerized  information systems
to accurately calculate,  store or use a date after 1999. This could result in a
system failure or miscalculations  causing  disruptions of operations.  The Year
2000 issue affects virtually all companies and all organizations.

     In this regard, the Advisor along with certain affiliates, began a computer
systems  project in 1997 to  significantly  upgrade its  existing  hardware  and
software.  The Advisor  completed  the testing and  conversion  of the financial
accounting  operating  systems in February  1998.  As a result,  the Advisor has
generated operating efficiencies and believes its financial accounting operating
systems are Year 2000  ready.  The Advisor  incurred  hardware  costs as well as
consulting  and other  expenses  related to the  infrastructure  and  facilities
enhancements  necessary  to complete  the upgrade and prepare for the Year 2000.
There are no other  significant  internal  systems or software that the Trust is
using at the present time.

     The Advisor of the Trust surveyed the Trust's material  third-party service
providers  (including  but  not  limited  to its  banks  and  telecommunications
providers) and  significant  vendors and received  assurances  that such service
providers  and vendors are Year 2000 ready.  The Trust does not  anticipate  any
problems  with such  providers  and  vendors  that would  materially  impact its
results of operations, liquidity or capital resources.  Nevertheless the Advisor
is developing  contingency plans for all of its 'mission-critical functions" to
insure business continuity.

     In  addition,  the Trust is also  subject  to  external  forces  that might
generally  affect  industry  and  commerce,  such as utility and  transportation
company Year 2000 readiness failures and related service interruptions. However,
the Trust does not  anticipate  these  would  materially  impact its  results of
operations, liquidity or capital resources.

     To date, the Trust has incurred $17,527 of costs associated with being Year
2000  ready.  The  Trust  does not  expect  to incur  any  additional  Year 2000
readiness costs.

Liquidity and Capital Resources

     At September  30, 1999 the Trust had  significant  liquidity  consisting of
cash and cash  equivalents,  of  approximately  $6.6 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  $4.9 million.  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.  Based on current
projections,  the Advisor  believes  the Trust will need to adjust the  dividend
rate  with the  dividend  payment  to be made in  February  2000.  The  Board of
Trustees will determine the new rate at their quarterly meeting in November.  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.
<PAGE>

     The  Trust's  investments  in PIMs and  PIMIs,  in  addition  to  providing
guaranteed or insured  monthly  principal  and interest  payments on the MBS and
insured  mortgages,  may  provide  the  Trust  with  additional  income  through
participation  in the  cash  generated  by  the  operations  of  the  underlying
properties  and a  portion  of  the  appreciation  realized  upon  the  sale  or
refinancing of the underlying  properties.  The Trust's participation  interests
and the principal and interest  payments on the  Additional  Loan portion of the
PIMIs are  neither  insured nor  guaranteed  and will  depend  primarily  on the
successful operation of the underlying properties.

     The Advisor  continues  to monitor the  operations  of the  Lifestyles  and
Windward Lakes PIMIs that are operating under workout arrangements.  Through the
third quarter of 1999 the operations of these  properties have remained  stable.
The Seasons PIMI  continues to perform well and is  generating  sufficient  cash
flow from property operations to make the Additional Loan interest payments. The
property  underlying the Red Run PIMI is generating cash flow from operations to
fund a portion of its  Additional  Loan  interest  payments  and has  sufficient
escrows to make up any shortfalls in interest payments during 1999.

     In June 1999 the Trust entered into a second  modification  agreement  with
the  borrowers of the Mountain  View  Apartments  PIMI  reducing  interest  paid
monthly on the insured  mortgage by 1.25% per annum from January 1, 1999 through
December 31, 2004 and changing the participation  features.  Under the Agreement
the Trust will receive 75% of the first  $130,667 of the surplus cash and 50% of
any  remaining  surplus  cash on an  annual  basis  to pay the  Additional  Loan
interest  except that $288,580 of existing  accruals  related to the  Additional
Loan have been  forgiven.  Unpaid  Additional  Loan interest shall accrue and be
payable  if there are  sufficient  proceeds  from a sale or  refinancing  of the
property.  In  addition,  funds  held in escrow by GIT were used to pay down the
Additional   Loan  by  $153,600  and  funded  a  $54,000  reserve  for  property
improvements.

     During the third  quarter the Trust  received a  prepayment  of the Audubon
Villas PIMI and paid a special distribution of $1.30 per share from the proceeds
of the payoff.

     The Trust has the  option  to call  PIMs and  PIMIs by  accelerating  their
maturity if the loans are not repaid by the tenth year after permanent  funding.
The Trust will  determine the merits of exercising  the call option for each PIM
or PIMI as economic  conditions  warrant.  Such factors as the  condition of the
asset, local market conditions, interest rates and available financing will have
an impact on this decision.

Assessment of Credit Risk

     The Trust's  investments  in MBS and insured  mortgages  are  guaranteed or
insured by FannieMae,  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.

     FannieMae 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,
maintain the property and obtain adequate insurance coverage; 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 $6.3 million
of commercial  paper,  which is issued by entities with a credit rating equal to
one of the top two rating  categories  of a  nationally  recognized  statistical
rating organization.

Results of Operations

     The Trust's net income  decreased  by $4.5  million  during the nine months
ended September 30, 1999 as compared to the nine months ended September 30, 1998
due  primarily  to  decreases  in  interest  income  net of  decreases  in asset
management  fees to an  affiliate  and  amortization  expense.  Additional  Loan
interest  income declined in 1999 due to the Park Highland and Coconut Palm PIMI
payments  in 1998.  Participation  income was higher in 1998 as compared to 1999
due primarily to the receipt of participation  income from the Park Highland and
Coconut  Palm  PIMIs in 1998 which was  greater  than the  participation  income
received from the Audubon Villas PIMI in 1999.  Basic interest on PIMs and PIMIs
decreased  during the nine months ended  September 30, 1999 compared to 1998 due
primarily to the Park Highland and Coconut Palm PIMI prepayments in 1998 and the
Audubon Villas PIMI prepayment in 1999.  Interest income on MBS decreased during
the nine months  ended  September  30, 1999 as compared to 1998 due to principal
collections reducing the MBS investment balance. Other interest income decreased
due to lower average cash balances while asset  management  fees to an affiliate
and amortization of prepaid fees and expenses  decreased due to the PIMI payoffs
mentioned above.

     Net  income  increased  by $3.6  million  during  the  three  months  ended
September 30, 1999 as compared to the corresponding period in 1998 due primarily
to participation  income received from the Audubon Villas PIMI  prepayment,  the
reclassification  of  deferred  income  related to the  Audubon  Villas  PIMI to
Additional  Loan interest upon prepayment of the PIMI and  amortization  expense
decreased  which was a result of the  payoffs of the Park  Highland  and Coconut
Palm PIMIs in 1998.

     The Trust funds a portion of its dividends with principal collections which
will  continue  to reduce the assets of the Trust  thereby  reducing  the income
generated by the Trust in the future. Asset management fees will decrease as the
Trust's  investments in MBS, PIMs and insured mortgages continue to decline as a
result of principal collections.

<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: October 29, 1999