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         June 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
                                                                                   June 30,           December 31,
                                                                                   1999                   1998
Participating Insured Mortgage Investments
 ("PIMIs") (Note 2):
<S>                                                                         <C>                    <C>
   Insured Mortgages                                                        $   75,175,715         $    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)                                                                      47,538,654              47,737,583
Mortgage-Backed Securities and insured
 mortgage ("MBS") (Note 3)                                                      19,349,413              22,132,858

           Total mortgage investments                                          153,307,644             156,500,763

Cash and cash equivalents                                                        7,475,528               9,004,397
Interest receivable and other assets                                             1,014,211               1,057,365
Prepaid acquisition fees and expenses, net
 of accumulated amortization of $6,557,413
 and $6,125,191, respectively                                                    3,013,383               3,445,605
Prepaid participation servicing fees, net of
 accumulated amortization of $1,936,134 and
 $ 1,776,625, respectively                                                       1,254,050               1,413,559

           Total assets                                                     $  166,064,816         $   171,421,689

                                          LIABILITIES AND SHAREHOLDERS' EQUITY

Deferred income on Additional Loans
   (Note 5)                                                                 $    5,958,322         $     5,773,669
Other liabilities                                                                  124,962                  33,230

           Total liabilities                                                     6,083,284               5,806,899

Shareholders' equity (Note 4):
   Common stock, no par value; 17,510,000
   Shares authorized; 15,053,135 Shares
   issued and outstanding                                                      159,392,153             164,742,014

  Accumulated comprehensive income                                                 589,379                 872,776

           Total Shareholders' equity                                          159,981,532             165,614,790

           Total liabilities and Shareholders'
             equity                                                         $  166,064,816         $   171,421,689


</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                 For the Six Months
                                                        Ended June 30,                     Ended June 30,

                                                   1999               1998                1999            1998

Revenues:
   Interest income - PIMs
<S>                                         <C>               <C>                 <C>             <C>
    and PIMIs:
    Basic interest                          $  2,288,267      $  2,955,766        $  4,634,107    $  6,011,682
    Additional Loan
       Interest                                   79,398         2,754,049             187,665       2,862,316
    Participation income                          75,020         4,871,325              75,020       4,898,075
   Interest income - MBS                         390,263           498,604             800,295       1,018,248
   Other interest income                          97,134           257,217             205,164         385,637

         Total revenues                        2,930,082        11,336,961           5,902,251      15,175,958

Expenses:
   Asset management fee
    to an affiliate                              290,685           359,209             580,287         730,797
   Expense reimbursements
    to affiliates                                 67,479           (27,525)             85,694          68,121
   Amortization of prepaid
    fees and expenses                            295,865         1,259,126             591,731       1,638,720
   General and
    administrative                               147,333           141,447             209,854         224,049

         Total expenses                          801,362         1,732,257           1,467,566       2,661,687

Net income                                     2,128,720         9,604,704           4,434,685      12,514,271

Other comprehensive income:
   Net change in unrealized
   gain on MBS                                  (231,864)           25,408            (283,397)        (64,285)

Total comprehensive income                  $  1,896,856      $  9,630,112        $  4,151,288    $ 12,449,986

Basic earnings per Share                    $        .14      $        .64        $        .29    $       .83

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 Six Months
                                                                                             Ended June 30,

                                                                                      1999                  1998
Operating activities:
<S>                                                                             <C>                 <C>
   Net income                                                                   $    4,434,685      $   12,514,271
   Adjustments to reconcile net income to
    net cash provided by operating activities:
      Amortization of net premium                                                        2,194               -
      Amortization of prepaid fees and expenses                                        591,731           1,638,720
      Changes in assets and liabilities:
         Decrease in interest receivable and other
          assets                                                                        43,154             117,370
         Increase (decrease) in other liabilities                                       91,732              (8,453)

               Net cash provided by operating activities                             5,163,496          14,261,908

Investing activities:
   Principal collections on MBS                                                      2,497,854           2,151,336
   Insured mortgage prepayment                                                           -              16,752,295
   Principal collections on PIMs                                                       409,674             449,695
   Collection of Additional Loan                                                         -               5,850,900
   Increase (decrease) in deferred income on
      Additional Loans                                                                 184,653          (2,293,297)

               Net cash provided by investing activities                             3,092,181          22,910,929

Financing activity:
   Dividends                                                                        (9,784,546)         (9,784,546)

Net (decrease) increase in cash and cash equivalents                                (1,528,869)         27,388,291

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

Cash and cash equivalents, end of period                                        $    7,475,528      $   37,138,095


</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 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 June 30, 1999,  its results of operations for
the three and six months  ended June 30,  1999 and 1998,  and its cash flows for
the six months ended June 30, 1999 and 1998.  The results of operations  for the
three and six months ended June 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
features.  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 have been forgiven.  In addition,  the
borrower  will repay  $153,600  of the  Additional  Loan and fund  approximately
$54,000 to a reserve for property  improvements.

At June 30, 1999,  the Trust's PIMs  and  PIMIs  have a fair  value of
approximately  $135,403,097 and gross unrealized   gains  and  losses  of
approximately   $2,005,102   and  $560,236 respectively.  The PIMs and PIMIs
have maturities  ranging from 2002 to 2034. At June 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>


                                             KRUPP GOVERNMENT INCOME TRUST

                                       NOTES TO FINANCIAL STATEMENTS, Continued


3.    MBS

At June 30, 1999, the Trust's MBS portfolio has an amortized cost of $18,760,034
and unrealized gains and losses of $608,216 and $18,837,  respectively.  The MBS
portfolio  has  maturities  ranging  from 2008 to 2035.  At June 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 six months ended
      June 30, 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                                     -              4,434,685                 -                  4,434,685


Dividends                                 (5,349,861)        (4,434,685)                -                 (9,784,546)

Decrease in unrealized
 gain on MBS                                   -                  -                  (283,397)              (283,397)

Balance at June 30, 1999              $  159,392,153        $     -              $    589,379        $   159,981,532

</TABLE>

5. Related Party Transactions

During the three months ended June 30, 1999 Additional Loan interest income from
an affiliate of the Advisor of $57,740 was received. During the six months ended
June 30, 1999 and 1998, Additional Loan interest income from an affiliate of the
Advisor of $144,348 and $86,609,  respectively,  was received. In addition,  the
Trust received $75,020 of participation  from an affiliate of the Advisor during
the second quarter and first half of 1999 and received  $26,749 of participation
interest during the six months ended June 30, 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, 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 200.
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 not  incurred any cost  associated  with being Year 2000
ready.  All costs have been incurred by the Advisor and it is estimated that any
future Year 2000 readiness  costs will be borne by the Advisor.

Liquidity and Capital Resources

At June 30, 1999 the Trust has significant liquidity consisting of cash and cash
equivalents,  of approximately $7.5 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 for the forseeable future.

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  remainder  of the year.  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 second
quarter of 1999 the operations of these  properties  have remained  stable.  The
Advisor  expects the Audubon  Villas PIMI to prepay  during the third quarter of
1999  and   anticipates   the  Trust  will  receive  a  substantial   amount  of
participation  income.  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 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,  the borrower will pay down $153,600 of the Additional Loan and fund a
$54,000 reserve for property improvements.

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 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,  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  $7.4 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  decreased $7.5 million and $8.1 million for the three and six months
ended June 30,  1999 as  compared to the  corresponding  periods in 1998.  Basic
interest on PIMs and PIMIs  decreased  $667,000 and $1,378,000  during the three
and six  months  ended  June 30,  1999 and 1998,  respectively,  due to the Park
Highland  and  Coconut  Club PIMI  prepayments.  Additional  Loan  interest  and
Participation  income were higher in 1998 versus 1999 due to the  recognition of
previously  deferred  income on the Park  Highland and Coconut  Palm  Additional
Loans and the participation  interest received from these prepayments.  Interest
income on MBS  decreased  $108,000 and $218,000  during the three and six months
ended June 30,  1999 due to the  on-going  principal  collections  reducing  the
Trust's MBS investments.

Asset  management  fees declined  $69,000 and $151,000 during the second quarter
and first  half of 1999 as  compared  to the  corresponding  periods in 1998 due
primarily  to the  prepayments  of the Park  Highland  and  Coconut  Club PIMIs.
Amortization  expense was higher in the second quarter and first half of 1998 as
compared to 1999 due primarily to fully amortizing the prepaid fees and expenses
associated with the Park Highland PIMI in June of 1998.

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
               (a) Exhibits

(10-1)        Second modification agreement between
              Krupp Government Income
              Trust, Berkshire Mortgage Finance Corporation,
              and Mountain View Ltd.

               (b) 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:    August 6, 1999