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             March 31, 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 of                             (IRS employer
incorporation or organization)                              identification no.)

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
                                                                            March 31,                   December 31,
                                                                              1999                       1998     
Participating Insured Mortgage Investments
   ("PIMIs") (Note 2):                                                          
<S>                                                                              <C>                     <C>        
 Insured Mortgages                                                               $75,282,186             $75,386,460
 Additional Loans, net of impairment provision
    of $2,114,346                                                                 11,243,862              11,243,862
Participating Insured Mortgages ("PIMs")(Notes 2)                                 47,639,105              47,737,583
Mortgage-Backed Securities ("MBS") (Note 3)                                       20,587,263              22,132,858

           Total mortgage investments                                            154,752,416             156,500,763
 

Cash and cash equivalents                                                          9,145,850               9,004,397
Interest receivable and other assets                                               1,071,476               1,057,365
Prepaid acquisition fees and expenses, net
 of accumulated amortization of $6,341,302
 and $6,125,191, respectively                                                      3,229,494               3,445,605
 
Prepaid participation servicing fees, net of
 accumulated amortization of $1,856,380 and
 $1,776,625, respectively                                                          1,333,804               1,413,559

           Total assets                                                         $169,533,040            $171,421,689


                                                      LIABILITIES AND SHAREHOLDERS' EQUITY


Deferred income on Additional Loans (Note 5)                                    $  5,853,511            $  5,773,669
Other liabilities                                                                    702,580                  33,230

           Total liabilities                                                       6,556,091               5,806,899

Shareholders' equity (Note 4):
   Common stock, no par value; 17,510,000
     Shares authorized; 15,053,135 Shares
     issued and outstanding                                                      162,155,706             164,742,014
   Accumulated comprehensive income                                                  821,243                 872,776

           Total Shareholders= equity                                            162,976,949             165,614,790

           Total liabilities and Shareholders'equity                         $   169,533,040            $171,421,689



</TABLE>



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

                                         KRUPP GOVERNMENT INCOME TRUST

                                               STATEMENTS OF INCOME

<CAPTION>

                                                                                    For the Three Months
                                                                                        Ended March 31,    
                                                                                       1999       1998    
Revenue:
    Interest income - PIMs and PIMIs:
<S>                                                                           <C>                   <C>       
       Basic interest                                                         $  2,345,840          $3,055,916
       Additional loan interest                                                    108,267             108,267
       Participation income                                                           -                 26,750
    Interest income - MBS                                                          410,032             519,644
    Interest income cash and cash equivalents                                      108,030             128,420

         Total revenue                                                           2,972,169           3,838,997

Expenses:
   Asset management fee to an affiliate                                            289,602             371,588
   Expense reimbursements to affiliates                                             18,215              95,646
   Amortization of prepaid fees and expenses                                       295,866             379,594
   General and administrative                                                       62,521              82,602
 
         Total expenses                                                            666,204             929,430

Net income                                                                    $  2,305,965        $  2,909,567

Basic earnings per Share                                                      $        .15        $        .19

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


</TABLE>

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

<TABLE>

                                          KRUPP GOVERNMENT INCOME TRUST

                                             STATEMENTS OF CASH FLOWS
                                                                
<CAPTION>


                                                                                  For the Three Months
                                                                                    Ended March 31,      

                                                                                    1999                1998    
Operating activities:
<S>                                                                                     <C>              <C>        
   Net income                                                                           2,305,965        $ 2,909,567
 
   Adjustments to reconcile net income to
   net cash provided by operating activities:
      Amortization of premium and discounts                                                   351                 36
      Amortization of prepaid fees and expenses                                           295,866            379,594          
      Changes in assets and liabilities:
        Decrease (increase) in interest receivable and
           other assets                                                                   (14,111)            93,098
        Increase in other liabilities                                                     669,350                766

               Net cash provided by operating activities                                3,257,421          3,383,061

Investing activities:
     Principal collections on MBS                                                       1,493,711            967,643
     Principal collections on PIMs and insured
       mortgages                                                                          202,752            226,193
     Increase in deferred income
       on Additional Loans                                                                 79,842            219,530

               Net cash provided by investing activities                                1,776,305          1,413,366


Financing activity:
   Dividends                                                                           (4,892,273)        (4,892,274)

Net increase (decrease) in cash and cash equivalents                                      141,453            (95,847)
 
Cash and cash equivalents, beginning of period                                          9,004,397          9,749,804

Cash and cash equivalents, end of period                                             $  9,145,850        $ 9,653,957

</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,
1998 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, 1999 and the results of its  operations  and
its cash flows for the three months  ended March 31, 1999 and 1998.  The results
of  operations  for the three  months  ended March 31, 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 

At March 31, 1999, the Trust's PIMs and PIMIs have a fair value of approximately
$137,899,000 and gross unrealized  gains of approximately  $3,734,000.  The PIMs
and PIMIs have maturities ranging from 2002 to 2034. At March 31, 1999 there are
no insured  mortgage  loans within the Trust's  portfolio that are delinquent of
principal or interest. 

3.  MBS 

At March 31,  1999,  the  Trust's MBS  portfolio  has an  amortized  cost of
$19,766,020   and   unrealized   gains  and  losses  of  $828,759   and  $7,516,
respectively. The MBS portfolio has maturities ranging from 2008 to 2029.

4.    Changes in Shareholders' Equity

A summary of changes in  shareholders'  equity for three  months ended March 31,
1999 is as follows:
<TABLE>
<CAPTION>
                                           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                                  -                  2,305,965                         -         2,305,965
 
Dividends                              (2,586,308)            (2,305,965)                  -              (4,892,273)

Decrease in unrealized
 gain on MBS                                -                      -                   (51,533)              (51,533)

Balance at March 31, 1999             $162,155,706            $    -                $  821,243     $ 162,976,949

</TABLE>



                                KRUPP GOVERNMENT INCOME TRUST

                         NOTES TO FINANCIAL STATEMENTS, continued
                                                                   

5. Related Party  Transactions  During the three months ended March 31, 1999 and
1998, the Trust received $86,609 and $86,609,  respectively,  of interest income
on  Additional  Loans from an affiliate of the Advisor.  In addition,  the Trust
received $26,749 related to  participation  interest income for the three months
ended March 31, 1998.

<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.
 
The  Advisor  of the Trust 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 of the Trust,  along with certain  affiliates,
upgraded the computer  hardware and software  during 1997 and 1998. As a result,
the Advisor has  generated  operating  efficiencies  and believes its  financial
accounting operating systems are Year 2000 ready.

The Advisor of the Trust is evaluating  the potential  adverse impact that could
result from the failure of material third-party service providers (including but
not  limited  to its banks and  telecommunications  providers)  and  significant
vendors  to be Year  2000  ready.  The  Trust is  surveying  these  third  party
providers and assessing  their  readiness  with year 2000. To date, the Trust is
not  aware  of  any  problems  that  would  materially  impact  its  results  of
operations,  liquidity  or  capital  resources.  However,  the Trust has not yet
obtained all written assurances that these providers would be Year 2000 ready.

The  Trust  currently  does  not  have a  contingency  plan  in the  event  of a
particular  provider  or system  not being  Year 2000  ready.  Such plan will be
developed  if it  becomes  clear that a  provider  is not going to  achieve  its
scheduled  readiness  objectives by June 30, 1999. The inability of one of these
providers to complete its Year 2000  resolution  process could impact the Trust.
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.  No estimate can be
made at this time as to the impact of the readiness of such third parties.

Liquidity and Capital Resources

At March 31, 1999 the Trust has  significant  liquidity  consisting  of cash and
cash  equivalents,  of  approximately  $9.1  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  dividends  paid to
investors of approximately $4.9 million per quarter.  The Trust currently has an
annual dividend rate of $1.30 per share, paid in quarterly installments of $.325
per share.  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  of the  Trust  periodically  reviews  the
dividend  rate to  determine  whether  an  adjustment  to the  dividend  rate is
necessary based on projected  future cash flows.  Based on current  projections,
the Advisor  believes the Trust can maintain the current  dividend  rate for the
foreseeable  future.  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  investments in PIMs and PIMIs, in addition to providing  guaranteed
or insured monthly principal and interest  payments,  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 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 first
quarter of 1999 the  operations of these  properties  have remained  stable.  In
1998,  the  borrower  of the  Audubon  Villas  PIMI  notified  the  Trust of its
intention to prepay this PIMI.  At this time the Advisor  cannot  determine if a
prepayment  will actually  occur,  but in the event of a prepayment  the Advisor
anticipates the Trust will receive a substantial amount of participation income.
The Trust is in the process of negotiating debt service relief with the borrower
of the Mountain View  Apartments  PIMI and hopes to conclude these  negotiations
during the second quarter.  The Trust anticipates  reducing the interest rate by
1.25% per annum and having  the  borrower  make base  interest  payments  on the
Additional Loan to the extent the property  generates  surplus cash. The Seasons
PIMI  continues  to perform  well and is  generating  sufficient  cash flow from
property  operations to make the base interest  payments on the Additional Loan.
The property underlying the Red Run PIMI is generating cash flow from operations
to  fund a  portion  of its  Additional  Loan  base  interest  payments  and has
sufficient  escrows to make up any shortfalls in base interest  payments  during
1999.

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 insured  mortgages and MBS are guaranteed or insured
by Fannie  Mae,  the  Federal  Home Loan  Mortgage  Corporation  ("FHLMC"),  the
Government National Mortgage  Association  (AGNMA@) or the Department of Housing
and Urban  Development  ("HUD") and the  certainty of 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 an 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 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  $8.4 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.

Operations

Net income for the first quarter of 1999 decreased by approximately  $604,000 as
compared to the first quarter of 1998 due  primarily to lower basic  interest on
PIMs and PIMIs caused by the  prepayments  of the Coconut Club and Park Highland
PIMIs in 1998.  Additionally these prepayments reduced the Trust's investment in
mortgages,  which  contributed to the $82,000  decline in asset  management fees
during the first quarter of 1999 versus the first quarter of 1998.  Amortization
expense  decreased  $84,000 in 1999 as compared to 1998 due to fully  amortizing
the prepaid fees and expenses associated with the Coconut Club and Park Highland
PIMIs in 1998.  Expense  reimbursements  to affiliates  decreased $77,000 during
1999 as  compared  to 1998 due  primarily  to a $49,000  rebate  related to 1998
expense reimbursements.

The Trust generally 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. Additionally, 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:   April 30, 1999