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    June 30, 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  
     
<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

<CAPTION>
                                           BALANCE SHEETS
                                                        

                                               ASSETS
                                                              June 30,     December 31,
                                                                1997           1996    
          <S>                                               <C>            <C>
          Participating Insured Mortgage Investments
           ("PIMIs") (Note 2):
           Insured Mortgages                                $108,732,575   $114,625,179
           Additional loans                                   19,209,108     20,749,108
          Participating Insured Mortgages ("PIMs")
           (Notes 2)                                          48,310,164     48,479,897
          Mortgage-Backed Securities and insured
           mortgage ("MBS") (Note 3)                          28,426,416     26,754,326

                 Total mortgage investments                  204,678,263    210,608,510

          Cash and cash equivalents                           23,785,978     19,053,931
          Interest receivable and other assets                 1,558,142      1,707,799
          Prepaid acquisition fees and expenses, net
           of accumulated amortization of $6,668,353
           and $6,090,173, respectively                        6,805,006      7,383,186
          Prepaid participation servicing fees, net of
           accumulated amortization of $1,822,922 and
           $1,610,677, respectively                            2,668,083      2,880,328

                 Total assets                               $239,495,472   $241,633,754

                                LIABILITIES AND SHAREHOLDERS' EQUITY

          Deferred income on Additional Loans (Note 5)      $  7,246,324   $  7,325,414
          Other liabilities                                       12,892         27,733

                 Total liabilities                             7,259,216      7,353,147



          Shareholders' equity (Note 4):
            Common stock, no par value; 17,510,000
            Shares authorized; 15,053,135 Shares
            issued and outstanding                           231,148,960    233,015,255

            Unrealized gain on MBS                             1,087,296      1,265,352


                 Total Shareholders  equity                  232,236,256    234,280,607

                 Total liabilities and Shareholders'
                   equity                                   $239,495,472   $241,633,754




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


</TABLE>







                                    KRUPP GOVERNMENT INCOME TRUST
<TABLE>
       
<CAPTION>
                                      STATEMENTS OF INCOME
                                                        

                                       For the Three Months        For the Six Months
                                           Ended June 30,            Ended June 30,   

                                          1997        1996         1997        1996   

          Revenues:
            <S>                     <C>           <C>          <C>          <C>
            Interest income - PIMs 
             and PIMIs:
             Base interest          $ 2,940,268   $ 3,221,901  $ 6,219,189  $ 6,609,507
             Additional Loan 
              Interest                   15,625          -         648,745         -
             Participation income           -         146,256    1,348,392      146,256
            Interest income - MBS       574,190       590,932    1,100,421    1,202,648
            Other interest income       320,120       274,386      590,514      395,487

                Total revenues        3,850,203     4,233,475    9,907,261    8,353,898

          Expenses:
            Asset management fee 
             to an affiliate            381,699       396,089      764,685      811,376
            Expense reimbursements 
             to affiliates               95,646        83,879      204,642      191,625
            Amortization of prepaid 
             expenses and fees          395,212       403,417      790,425      823,240
            General and 
             administrative             101,182        85,421      229,256      185,386

                Total expenses          973,739       968,806    1,989,008    2,011,627

          Net income                $ 2,876,464   $ 3,264,669  $ 7,918,253  $ 6,342,271

          Earning per Share         $      .20    $       .22  $       .53  $       .42

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


</TABLE>




<PAGE>


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





                                  KRUPP GOVERNMENT INCOME TRUST
<TABLE>
       
<CAPTION>
                                   STATEMENTS OF CASH FLOWS
                                                       

                                                                   For the Six Months   
                                                                     Ended June 30,      

                                                                    1997          1996   
          <S>                                                   <C>           <C>
          Operating activities:
            Net income                                          $ 7,918,253   $ 6,342,271
            Adjustments to reconcile net income to
             net cash provided by operating activities:
              Amortization of net premium                               980         -
              Amortization of prepaid fees and expenses             790,425       823,240
              Changes in assets and liabilities:
                Decrease in interest receivable and other
                 assets                                             149,657       212,208
                Decrease in other liabilities                       (14,841)       (7,080)

                    Net cash provided by operating activities     8,844,474     7,370,639

          Investing activities:
            PIM prepayment                                        5,630,985     8,862,450
            Principal collections on PIMs                           431,352       427,672
            Collection of Additional Loan                         1,540,000          -
            Principal collections on MBS                          1,514,874     2,342,724
            Acquisition of insured mortgage                      (3,366,000)         -
            Increase decrease in deferred income on 
              Additional Loans                                      (79,090)      728,992

                    Net cash provided by investing activities     5,672,121    12,361,838

          Financing activity:
            Dividends                                            (9,784,548)   (9,784,548)

          Net increase in cash and cash equivalents               4,732,047     9,947,929

          Cash and cash equivalents, beginning of period         19,053,931     8,914,295

          Cash and cash equivalents, end of period              $23,785,978   $18,862,224


</TABLE>




<PAGE>



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






                          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.  

The  Trust  accounts for  all of  its  investments in  Mortgage Backed
Securities, including those that are part of a PIM or PIMI investment,
in accordance with Financial Accounting Standards No. 115,  Accounting
for Certain Investments in Debt and Equity Securities. 

The Federal Housing Administration Participating Insured Mortgages and
all Additional  Loans  are carried  at  cost less  principal  payments
unless the Advisor  of the  Trust believes there  is an impairment  in
value,  in  which  case  a   valuation  allowance  is  established  in
accordance with Financial Accounting Standards No. 114,  Accounting by
Creditors for Impairment of a Loan,  and Financial Accounting Standard
No.  118,  Accounting by Creditors  for Impairment of  a Loan - Income
Recognition and Disclosures.   

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 June 30, 1997, its results of  operations for
the three and six  months ended June 30,  1997 and 1996, and its  cash
flows for the six months ended June 30, 1997 and 1996.

The results of operations for the three and six months  ended June 30,
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

At June  30, 1997,  the Trust s PIMs  and PIMIs have  a fair  value of
approximately $170,682,250  and gross  unrealized gains and  losses of
approximately  $307,002 and  $5,876,599, respectively.   The  PIMs and
PIMIs  have maturities ranging  from 2001 to  2034.  At  June 30, 1997
there are no loans within the Trust s portfolio that are delinquent of
principal or interest.

                                       -8-
<PAGE>

On February 6,  1997, the Trust, with the  approval of the 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 the 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, 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; $5,630,985 to payoff the outstanding first mortgage principal
balance.  During the third quarter, the Trust will make a special  
dividend of $.92 per share to it s investors.   This  special distribution 
will consist  of the  1996 Canyon Ridge PIM prepayment and the 1997 
Timber Ridge prepayment proceeds, net of the reinvestment of $3,400,000 
face value insured multifamily mortgage

   3.  MBS

At June 30,  1997, the Trust s MBS portfolio has  an amortized cost of
approximately  $27,339,120  and   unrealized  gains   and  losses   of
$1,092,332 and $5,036, respectively.  The MBS portfolio has maturities
ranging from 2008 to 2029.

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.

   4.  Changes in Shareholders' Equity

A summary of changes in shareholders' equity for six months ended June
30, 1997 is as follows:

<PAGE>

<TABLE>
                                                                                          Total
<CAPTION>
                                              Common      Retained     Unrealized  Shareholders'
                                               Stock      Earnings         Gain       Equity   
      <S>                                  <C>           <C>          <C>          <C>
      Balance at December 31, 1996         $233,015,255  $    -       $ 1,265,352  $234,280,607

      Net income                                -          7,918,253        -         7,918,253
                                            
      Dividends                              (1,866,295)  (7,918,253)       -        (9,784,548)

      Decrease in unrealized 
       gain on MBS                               -            -          (178,087)     (178,087)


      Balance at June 30, 1997             $231,148,960  $    -       $ 1,087,265  $232,236,256


</TABLE>


<PAGE>

            5.   Related Party Transactions

During the  three months  ended  June 30,  1997 and  June 30,  1996 the  Trust
received  $22,710  and  $0  of  interest   income  on  Additional  Loans  from
affiliates  of the Advisor. During the six month ended June 30, 1997 and 1996,
the Trust  received $100,194  and $150,413  of interest  income on  Additional
Loans from affiliates of the Advisor.

 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  cannot  support  such  payments.   Management  is
closely monitoring the operating performances of the remaining properties.
<PAGE>


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  PIMIs
including  interest rate  relief on  the first  mortgage through  the year
2000.  In addition, reserves set aside to fund  Windward Lakes Apartments 
Additional  Loan 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 of 1997 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 $5,630,985 to
payoff the outstanding first mortgage principal balance.  

During  the third quarter,  the Trust will  make a special  dividend of
$.92 per  share to it s investors.  This special distribution will consist
of the  1996  Canyon  Ridge  PIM  prepayment and  the  1997  Timber  Ridge
prepayment  proceeds, net  of the  reinvestment of  $3,400,000 face  value
insured multifamily mortgage

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 MBS and 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 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.

   Operations

The  following discussion relates to the operations of the Trust during
the  three  and six  months  ended  June 30,  1997  and  1996 (dollars  in
thousands, except per Share amounts):

The Trust s  net income for the three months ended June 30, 1997 decreased
as compared  to the three months  ended June 30, 1996  by approximately by
$388,000.

This decrease was due  primarily to lower base interest  and participation
income  of  $282,000 and  $146,000, respectively.    The decrease  in base
interest is a result of the prepayments of the Canyon Ridge PIM during the
second quarter  of 1996 and the Timber Ridge PIMI during the first quarter
of 1997.

Net income increased for the  six months ended June 30, 1997,  as compared
to  the same period  in 1996 by  approximately $1,576,000.   This increase
resulted  from higher  participation income  and additional  loan interest
income of $1,202,000 and $649,000, respectively net of lower base interest
of  $390,000.  The increases  in participation income  and additional loan
interest income are primarily related to the 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.  In  addition, the  Trust also
received  participation interest from  the Lincoln Green  PIM of $102,000.
Base  interest decreased as a result of  the repayment of the Timber Ridge
PIMI during  the first  quarter of  1997 and the  repayment of  the Canyon
Ridge PIM during the second quarter of 1996.

The  Trust  generally funds  a portion  of  its dividends  with  MBS and
PIM/PIMI  principal   collections  which   reduces  the  invested   assets
generating income for  the Trust in  the future.   As the invested  assets
decline so  will base interest on  PIMs and PIMIs, interest  income on MBS
and other interest income.   


                                                -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: August 5, 1997






















                                                  -15-
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<PAGE>