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

                                                FORM 10-Q

            (Mark One)

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

                        For the quarterly period ended    March 31, 1998

                                                    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      


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<PAGE>






                  Part I.  FINANCIAL INFORMATION

            Item 1.  FINANCIAL STATEMENTS

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

<TABLE>


<CAPTION>
                                        KRUPP GOVERNMENT INCOME TRUST

                                            BALANCE SHEETS

                                                ASSETS
                                                        March 31,          December 31,
                                                          1998                 1997    
            <S>
            Participating Insured Mortgage Investments
             ("PIMIs") (Note 2):
             <S>                                              <C>             <C>
             Insured Mortgages                                $108,335,018    $108,470,247
             Additional Loans                                   19,209,108      19,209,108  
            Participating Insured Mortgages ("PIMs")(Notes 2)   48,021,559      48,112,523
            Mortgage-Backed Securities ("MBS") (Note 3)         26,027,969      27,085,341

                  Total mortgage investments                   201,593,654     202,877,219 

            Cash and cash equivalents                            9,653,957       9,749,804  
            Interest receivable and other assets                 1,201,142       1,294,240   
            Prepaid acquisition fees and expenses, net
             of accumulated amortization of $6,935,600
             and $6,658,224, respectively                        5,330,850       5,608,226 
            Prepaid participation servicing fees, net of
             accumulated amortization of $1,941,288 and
             $1,839,070, respectively                            2,147,425       2,249,643

                  Total assets                                $219,927,028    $221,779,132

                                      LIABILITIES AND SHAREHOLDERS' EQUITY

            Deferred income on Additional Loans (Note 5)      $  8,091,136    $  7,871,606
            Other liabilities                                       26,180          25,414

                  Total liabilities                              8,117,316       7,897,020

            Shareholders' equity (Note 4):
             Common stock, no par value; 17,510,000
               Shares authorized; 15,053,135 Shares
               issued and outstanding                          210,513,803     212,496,510
             Unrealized gain on MBS                              1,295,909       1,385,602

                  Total Shareholders= equity                   211,809,712     213,882,112

                  Total liabilities and Shareholders'equity   $219,927,028    $221,779,132

</TABLE>
                                         -2-
<PAGE>


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


<TABLE>

<CAPTION>
                                    KRUPP GOVERNMENT INCOME TRUST

                                         STATEMENTS OF INCOME


                                                              For the Three Months  
                                                                  Ended March 31,     
                                                                 1998       1997    
            <S>    
            Revenue: 
              Interest income - PIMs and PIMIs:                          
                <S>                                            <C>           <C>
                Base interest                                  $3,055,916    $3,278,921
                Additional loan interest                          108,267       633,120      
                 Participation income                              26,750     1,348,392
              Interest income - MBS                               519,644       526,231 
              Other interest income                               128,420       270,394

                  Total revenue                                 3,838,997     6,057,058

            Expenses:
              Asset management fee to an affiliate                371,588       382,986
              Expense reimbursements to affiliates                 95,646       108,996
              Amortization of prepaid fees and expenses           379,594       395,213
              General and administrative                           82,602       128,074
                  Total expenses                                  929,430     1,015,269
                 
            Net income                                         $2,909,567    $5,041,789

            Earnings per Share                                 $      .19    $      .33

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

</TABLE>

                                        -4-
<PAGE>

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





<TABLE>

<CAPTION>
                                    KRUPP GOVERNMENT INCOME TRUST

                                       STATEMENTS OF CASH FLOWS
                                                          

                                                                     For the Three Months   
                                                                       Ended March 31,

                                                                      1998      1997    
            <S>                 
            Operating activities:
              <S>                                                 <C>          <C>
              Net income                                          $ 2,909,567  $ 5,041,789
             Adjustments to reconcile net income to
              net cash provided by operating activities:
                Amortization of net premium                                36          945
                 
                Amortization of prepaid fees and expenses             379,594      395,213     
                Changes in assets and liabilities:
                 Decrease in interest receivable and other assets      93,098       34,178
                 Increase (decrease) in other liabilities                 766      (21,479)

                    Net cash provided by operating activities       3,383,061    5,450,646
                    
            Investing activities:
               Principal collections on MBS                           967,643      698,831
               Principal collections on PIMs and insured 
                 mortgages                                            226,193    5,842,988
               Collection of Additional loan                             -       1,540,000
               Acquisition of MBS                                        -      (3,366,000)             
                Increase (decrease) in deferred income
                 on Additional Loans                                  219,530     (501,260)
              
                    Net cash provided by investing activities       1,413,366    4,214,559
              
            Financing activity:
              Dividends                                            (4,892,274)  (4,892,274)

            Net (decrease) increase in cash and cash equivalents      (95,847)   4,772,931     
                
            Cash and cash equivalents, beginning of period          9,749,804   19,053,931

            Cash and cash equivalents, end of period              $ 9,653,957  $23,826,862
              
</TABLE>


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


                                         -7-
<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, 1997
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,  1998 and the results  of its operations and its
cash flows for the three months ended March 31, 1998 and 1997.

The results  of operations for the  three months ended March  31, 1998 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,  1998, the  Trust=s PIMs  and PIMIs  have  a fair  value of
approximately  $169,173,339  and gross  unrealized  gains  and losses  of
approximately $380,609 and  $6,772,955, respectively.  The PIMs and PIMIs
have maturities ranging from 2002 to 2034. At March 31, 1998 there are no
insured mortgage loans within the  Trust s portfolio that are  delinquent
of principal or interest.

3.  MBS

At March  31, 1998,  the Trust=s  MBS portfolio has  an amortized  cost of
approximately $24,732,060  and unrealized  gains of $1,295,909.   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, 1998 is as follows:
                               Total
                               Common     Retained    Unrealized Shareholders' 
                               Stock      Earnings       Gain         Equity   

Balance at December 31, 1997 $212,496,510 $    -    $ 1,385,602  $213,882,112

Net income                         -       2,909,567      -         2,909,567
       
Dividends                      (1,982,707)(2,909,567)     -        (4,892,274)

Decrease in unrealized 
gain on MBS                        -           -        (89,693)      (89,693)
                                                                             
Balance at March 31, 1998    $210,513,803 $    -     $1,295,909  $211,809,712



                                         -9-
<PAGE>






                           KRUPP GOVERNMENT INCOME TRUST

                           NOTES TO FINANCIAL STATEMENTS, continued
                                                           

5.   Related Party Transactions

During  the three months  ended March 31,  1998 and 1997,  the Trust received
$86,609 and $77,484, respectively, of interest income on Additional Loans from 
an affiliate of the Advisor. In addition, the Trust received  $26,749 and  $0,
respectively, related to participation interest income for the three months 
ended March 31, 1998 and 1997.


                                         -10-
<PAGE>



Item 2. MANAGEMENTS 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 eight  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 1998, Mountain View and Red Run have  
sufficient escrows to make the required Additional  Loan base interest payments
if operations can not support such payments. In  addition,the Trust received  
the scheduled semi-annual interest payments on the Additional  Loans related 
to Park Highlands and The Season. The workouts related  to Lifestlyes  and 
Windward Lakes will only be paid if there is any surplus cash generated from
each of the propertys operations. 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. 

Park Highlands is being marketed for a  sale.  The borrower on the PIMI  has
informed the Advisor that he expects a sale transaction  may be  completed
during the second quarter 1998, and the first mortgage loan and the Additional


                                         -11-
<PAGE>


Loan will be paid  off. Should a sale transaction occur, the Trust  will
receive its preferred return as well as its share of any increase in the
property s value, as it is determined by the purchase price.

Coconut Palm  Club  continues to  generate  operating  deficits.   The  local
market remains highly competitive, and Coconut Palm Club must compete against
affordable single-family homes as well as other apartment communities, either
newly built or recently renovated. Coconut Palm Club is unable to generate
sufficient operating income to correct deferred maintenance items that
adversely affect the market s  perception of the property or to launch an
aggressive marketing campaign to draw more traffic to the property.   The
borrower on  the  Coconut Palm  Club  PIMI is  still searching  for  
additional equity to  bring into the  deal, and  the Advisor expects  to 
negotiate a loan restructure to  provide  some interim  debt  service  relief 
until the market stabilizes.

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  the
Federal National Mortgage Association ( 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 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 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 $8 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

The following discussion relates to the operations of the Trust during  the
three months ended March 31, 1998 and 1997

Net income for the first quarter of 1998 decreased by approximately $2,132,000
as compared to the first quarter of 1997 primarily due to the Timber Ridge
PIMI prepayment during the first quarter of 1997. The decreases in
participation income, additional loan interest and  base interest of
$1,322,000, $525,000 and $223,000, respectively, due to the borrower of the
Timber Ridge PIMI prepaying the first mortgage and Additional Loan during the
first quarter of 1997. Other interest income also decreased  due to the Trust
having lower short-term investment balances during the first quarter of 1998
when compared to the corresponding period in 1997 as a result of the special
dividend of $13.8 million.This special dividend occurred during  the 3rd
quarter of 1997 and was funded from the prepayment proceeds from the Timber
Ridge PIMI and Canyon Ridge PIM.These decreases  were slightly  offset by
lower total expenses of  $86,000. 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.
             


                                         -13-
<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




                                         -14-
<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, 1998
































                                         -15-
<PAGE>