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  THEx
             SECURITIES EXCHANGE ACT OF 1934

               For the quarterly period ended    March 31, 1997

                                       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.)

   470 Atlantic Avenue, Boston, Massachusetts                                
                                                                      02210
   (Address of principal executive offices)                        (Zip Code)


                                 (617) 423-2233
              (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  
     


                                   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.

          <PAGE>

                                    KRUPP GOVERNMENT INCOME TRUST

<TABLE>
                                           BALANCE SHEETS
                                                        

<CAPTION>
                                               ASSETS
                                                              March 31,    December 31,
                                                                1997           1996    
          <S>                                               <C>            <C>
          Participating Insured Mortgage Investments
           ("PIMIs") (Note 2):
           Insured Mortgages                                $108,866,216   $114,625,179
           Additional loans                                   19,209,108     20,749,108
          Participating Insured Mortgages ("PIMs")
           (Notes 2)                                          48,395,872     48,479,897
          Mortgage-Backed Securities and insured
           mortgage ("MBS") (Note 3)                          29,168,014     26,754,326

                 Total mortgage investments                  205,639,210    210,608,510

          Cash and cash equivalents                           23,826,862     19,053,931
          Interest receivable and other assets                 1,673,621      1,707,799
          Prepaid acquisition fees and expenses, net
           of accumulated amortization of $6,379,263
           and $6,090,173, respectively                        7,094,096      7,383,186
          Prepaid participation servicing fees, net of
           accumulated amortization of $ 1,716,800 and
           $1,610,677, respectively                            2,774,205      2,880,328

                 Total assets                               $241,007,994   $241,633,754

                                LIABILITIES AND SHAREHOLDERS' EQUITY

          Deferred income on Additional Loans (Note 5)      $  6,824,154   $ 7,325,414
          Other liabilities                                        6,254     27,733

                 Total liabilities                             6,830,408     7,353,147


          Shareholders' equity (Note 4):
            Common stock, no par value; 17,510,000
            Shares authorized; 15,053,135 Shares
            issued and outstanding                           233,015,255     233,015,255

            Retained earnings                                    149,515         -

            Unrealized gain on MBS                             1,012,816     1,265,352

                 Total Shareholders  equity                  234,177,586     234,280,607

                                              -2-
<PAGE>

                 Total liabilities and Shareholders'
                   equity                                   $241,007,994     $241,633,754

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



                                             -3-
<PAGE>

                                 KRUPP GOVERNMENT INCOME TRUST

<TABLE>
                                      STATEMENTS OF INCOME
                                                     
<CAPTION>
                                                          For the Three
                                                          Months  
                                                          Ended March 31,     
                                                            1997           1996    

          Revenue: 
            <S>                                             <C>            <C>
            Interest income - PIMs and PIMIs:
                Base interest                               $ 3,278,921    $ 3,387,606
                Additional loan interest                        633,120          -
                Participation income                          1,348,392          -
                Interest income - MBS                           526,231        611,716
            Other interest income                               270,394        121,101

                Total revenue                                 6,057,058      4,120,423

          Expenses:
            Asset management fee to an affiliate                382,986        415,287
            Expense reimbursements to affiliates                108,996        107,746
          Amortization of prepaid fees and expenses             395,213        419,823                                          
          Other                                                 128,074         99,965
              
               Total expenses                                 1,015,269     1,042,821 
         
          Net income                                        $ 5,041,789    $3,077,602
          Earnings per Share                                $       .33    $      .20
         
          Weighted average Shares outstanding                15,053,135    15,053,135

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

          <PAGE>


                                  KRUPP GOVERNMENT INCOME TRUST

<TABLE>
                                    STATEMENTS OF CASH FLOWS
                                                       
<CAPTION>
                                                                   For the Three Months   
                                                                     Ended March 31,      

                                                                    1997          1996    
          Operating activities:
            <S>                                                 <C>            <C>
            Net income                                          $ 5,041,789    $ 3,077,602
            Adjustments to reconcile net income to
             net cash provided by operating activities:
              Amortization of net premium                               945          1,295
              Amortization of prepaid fees and expenses             395,213        419,823
              Changes in assets and liabilities:
                Decrease in interest receivable and other
                 assets                                              34,178        147,044
                Decrease in other liabilities                       (21,479)       (12,215)

                    Net cash provided by operating activities     5,450,646      3,633,549

          Investing activities:
            Principal collections on MBS                            698,831      1,147,422
            Principal collections on PIMs and insured 
              mortgages                                           5,842,988        225,085
            Collection of Additional loan                         1,540,000          -
            Acquisition of insured mortgage                      (3,366,000)         -
            Increase (decrease)in deferred 
              income on Additional Loans                           (501,260)       634,807

                    Net cash provided by investing activities     4,214,559      2,007,314

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

          Net increase in cash and cash equivalents               4,772,931        748,589
              
          Cash and cash equivalents, beginning of period         19,053,931      8,914,295

          Cash and cash equivalents, end of period              $23,826,862   $  9,662,884

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



                                                   -5-
<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, 1996 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, 1997 and the results  of
       its operations  and its cash flows for  the three months ended March
       31, 1997 and 1996.

       The results of operations for the  three months ended March 31, 1997
       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

       On   February  6,  1997,  the  Trust,  with  the  knowledge  of  the

                                      -6-
<PAGE>

       independent Trustees, agreed to  a workout with the borrower  of the
       Windward Lakes Apartments PIMI,  an affiliate of the Advisor  of the
       Trust.  The terms are  as follows: a) interest rate relief  for 1997
       of  2% per  annum and  1% per  annum for  1998  through 2000  on the
       insured mortgage; b)  the borrower, McNab  KC-3 L.P.( McNab ),  will
       put in  $133,036 of new  equity into the  property; c) the  borrower
       will cap the  annual management fee  paid to an  affiliate to 3%  of
       revenues; d)  the Trust s participation in  current operations shall
       be 50% of Surplus  Cash as determined under HUD guidelines;  e) Base
       Interest on the  Additional Loan  is payable from  Trust s share  of
       Surplus Cash and unpaid amounts accrue at 7.5% per annum; and  f)the
       Trust s participation in  a sale or refinancing,  after repayment of
       the first mortgage  and additional loans,  interest rate relief  and
       accrued Base  Interest and McNab s new  equity, shall be 50%  of any
       remaining proceeds up to an  amount which would result in the  Trust
       having received a cumulative, noncompounded preferred return of  10%
       on  its investment in the  first mortgage and  additional loans; any
       remaining proceeds shall be distributed to McNab.  

       During  the  first  quarter the  Trust  received  proceeds  from the
       prepayment  of   The  Timber  Ridge  Apartments   PIMI  as  follows:
   $1,540,000   to  payoff the  Additional  loan;  $1,045,961  representing
   additional  interest;  $5,663,191  to   payoff  the  outstanding  first
   mortgage  principal  balance.     The  Trust   will  seek   alternate
 investments for the reinvestment of the Timber Ridge proceeds.

       At March 31, 1997,  the Trust s PIMs and PIMIs have  a fair value of
       approximately $168,974,859 and gross unrealized gains and losses  of
       approximately $191,027  and $7,687,364, respectively.   The PIMs and
       PIMIs have maturities ranging from 2001 to 2034.

                                   Continued

                         KRUPP GOVERNMENT INCOME TRUST

                         NOTES TO FINANCIAL STATEMENTS
                                            

   3.  MBS

       During  the first quarter of  1997, the Trust  acquired a $3,400,000
       face  value insured  multi-family mortgage  for $3,366,000  having a
       coupon rate of 7.625% per annum and a maturity of April 2032.

       At March 31, 1997, the  Trust s MBS portfolio has an amortized  cost
       of approximately  $28,155,198 and  unrealized  gains and  losses  of
       $1,064,070  and  $51,254,  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, 1997 is as follows:
   
<TABLE>
<CAPTION>
                                                                                     
                                                                           Total
                                     Common     Retained    Unrealized   Shareholders'
                                     Stock      Earnings         Gain       Equity   


      <S>                        <C>           <C>  <S>     <C>           <C>
      Balance at December 31,
      1996                       $233,015,255  $    -       $ 1,265,352   $234,280,607

      Net income                        -         5,041,789         -        5,041,789
                                            
      Dividends                         -        (4,892,274)        -        (4,892,274)

      Decrease in unrealized 
       gain on MBS                      -            -          (252,536)   (252,536)

 Balance at March 31, 1997        $233,015,255  $   149,515  $ 1,012,816  $234,177,586


           5.   Related Party Transactions

              During the three months  ended March 31, 1997 and 1996, the Trust received
              $77,484  and $150,413,  respectively,  of  interest income  on  Additional
              Loans from affiliates of the Advisor.


</TABLE>



                                                -8-
<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.


   Liquidity and Capital Resources

      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 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.  Seven of the Trust's
   nine  PIMIs  funded  the  construction  of  multi-family  housing,  which
   require time  to achieve  stabilized operations  following completion  of
   construction.   With this in  mind, the Trust  required the  borrowers to
   establish reserves  and escrows with Additional  Loan proceeds to provide
   funds  for   the  Additional  Loan  base  interest  payments  during  the
   construction and lease-up  periods.  As these  reserves become  depleted,
   full payment of the Additional  Loan base interest will  depend primarily
   on  whether  the underlying  property  can generate  sufficient operating
   cash flow.   For  1997,  Coconut Palm,  Mountain View,  Red Run  and  The
   Seasons have  sufficient escrows  to make  the  required Additional  Loan
   base  interest payments  if  operations can  not support  such  payments.
   Management  is  closely  monitoring  the  operating  performances  of the
   remaining  properties.    Overall,  the  Trust's  ability  to  meet   its
   objectives  will depend  primarily on  the  operating performance  of the
   properties  underlying  the  PIMs  and  PIMIs.    Lifestyles  Apartments 
   operating performance  has improved  under new  management operating  the
   property  for the  past  9 months.   However  stiff competition  from new
   apartment   complexes  and   affordable  single-family   homes  is  still
   prevalent in the  market and affects  the property s  ability to  achieve
   rental increases.   Overall, operations are stabilizing,  but significant
   improvement  remains  a long-term  goal.    The  Trust has  agreed  to  a
   modification of the terms of  the Windward Lakes PIMs  including interest
   rate relief on  the first mortgage through  the year 2000.   In addition,
   reserves set  aside to  fund Windward Lakes  Apartments  Additional  Loan

                                      -9-
<PAGE>

   base interest payments are depleted  and the property operations  may not
   generate sufficient cash flow to  meet the Additional Loan  base interest
   payments under the workout terms.  

      During the  first  quarter the  Trust  received  a prepayment  of  The
   Timber Ridge  Apartments PIMI.  On  February 28,1997,  the Trust received
   $1,540,000  to  payoff the  Additional  loan and  $1,045,961 representing
   additional interest. On March 6,  1997, the Trust received  $5,663,191 to
   payoff the  outstanding first mortgage principal  balance.   The Trust is
   presently  seeking alternate investments  for the  1996 Canyon  Ridge PIM
   prepayment and the  Timber Ridge prepayment proceeds.

      For the  first five  years of  the PIMs  and PIMIs  the borrowers  are
   prohibited from repaying.   For the second five years, the  borrowers can
   repay  the loans  and  pay the  greater of  a  prepayment penalty  or all
   participation interest for  PIMs, or by paying all  amounts due under the
   PIMIs and  satisfying the required  preferred return.  The  participation
   features and Additional Loans are  neither insured nor guaranteed  and if
   repayment of  a PIM or  PIMI results from  foreclosure on the  underlying
   property  or  an   insurance  claim  the  Trust  would  not  receive  any
   participation  interest or  any amounts  due under  the Additional  Loan.
   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  mortgages are  guaranteed or  insured by
   FNMA,  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.

      FNMA  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  conventional  real estate  lending,  including:    reliance on  the
   owner's operating skills,  ability to maintain occupancy  levels, control
   operating  expenses,   maintain  the   properties  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 $7 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

                                     -10-
<PAGE>

   statistical rating organization.



   Operations

      The following  discussion  relates  to  the operations  of  the  Trust
   during  the  three  months ended  March  31, 1997  and  1996  (dollars in
   thousands, except per Share amounts):

<TABLE>


<CAPTION>
                                                Three Months Ended March 31,   
                                                         1997          1996  
                                                           Per           Per
                                                Amount   Share  Amount Share

   <S>                                       <C>      <C>     <C>     <C>
   Interest - PIMs and PIMIs:
   Base interest income                      $3,279   $ .22   $3,388  $ .23
   Participation income                       1,348     .09      -       -
   Additional loan interest                     633     .04      -       -
   Interest income on MB                        526     .03      612    .04
   Other interest income                        270     .02      121    .01
   Trust expenses                              (619)   (.04)    (623)  (.04)
   Amortization of prepaid fees and
     expenses and organization costs           (395)   (.03)    (420)  (.04)

      Net income                             $5,042   $ .33   $3,078  $ .20

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


Net income  for  the  first  quarter  of  1997  increased  by  approximately
$1,964,000  as compared to  the first  quarter of  1996 primarily is  due to
amounts  received from the Timber  Ridge PIMI prepayment.   The increases in
participation  income and  additional  loan  interest income  are  primarily
related   to  Timber   Ridge  PIMI.   The  Trust   received   $1,246,000  of
participation  interest  and  reclassed  $540,000   of  interest  previously
received  and recorded  in  deferred income  to  interest income  upon early
repayment of the PIMI. The Trust generally funds a portion of its  dividends
with principal  collections. To the extent  this happens it  will reduce the
asset base generating income for the Trust in the future.   

</TABLE>



                                                -11-
<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





                                               -12-
<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 23, 1997






































                                                -13-
<PAGE>