<PAGE> PAGE 1
000 B000000 10/31/96
000 C000000 0000763569
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 PRINCOR GOVERNMENT SECURITIES INCOME FUND,INC
001 B000000 811-04226
001 C000000 5152475476
002 A000000 THE PRINCIPAL FINANCIAL GROUP
002 B000000 DES MOINES
002 C000000 IA
002 D010000 50392
002 D020000 0200
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
021 000000 0
022 A000001 FIRST CHICAGO CAPITAL MARKETS
022 B000001 36-3595942
022 C000001 255065
022 D000001 0
022 A000002 SMITH BARNEY SHEARSON
022 B000002 13-2869611
022 C000002 47218
022 D000002 16364
022 A000003 LEHMAN BROTHERS
022 B000003 13-2501865
022 C000003 36515
022 D000003 0
022 A000004 GOLDMAN SACHS CO.
022 B000004 13-5108880
022 C000004 25280
022 D000004 8494
022 A000005 MORGAN STANLEY & CO.
022 B000005 13-2655998
022 C000005 7249
022 D000005 24255
022 A000006 SALOMON BROTHERS
022 B000006 13-3082694
022 C000006 19357
022 D000006 7047
022 A000007 COUNTRYWIDE
022 B000007 95-3667085
022 C000007 24065
<PAGE> PAGE 2
022 D000007 0
022 A000008 DONALDSON, LUFKIN & JENRETTE (DLJ)
022 B000008 13-2741729
022 C000008 14818
022 D000008 2738
022 A000009 PAINEWEBBER, INC.
022 B000009 13-2638166
022 C000009 1383
022 D000009 7086
022 A000010 A. G. EDWARDS
022 B000010 43-0895447
022 C000010 6702
022 D000010 0
023 C000000 463394
023 D000000 72297
027 000000 Y
028 A010000 3248
028 A020000 1121
028 A030000 0
028 A040000 3964
028 B010000 2446
028 B020000 1127
028 B030000 0
028 B040000 5017
028 C010000 2957
028 C020000 1120
028 C030000 0
028 C040000 5006
028 D010000 3074
028 D020000 1118
028 D030000 0
028 D040000 4187
028 E010000 3337
028 E020000 1108
028 E030000 0
028 E040000 3950
028 F010000 2845
028 F020000 1122
028 F030000 0
028 F040000 5097
028 G010000 17907
028 G020000 6716
028 G030000 0
028 G040000 27221
028 H000000 12140
029 000000 Y
030 A000000 1210
030 B000000 4.75
030 C000000 0.00
031 A000000 456
031 B000000 0
<PAGE> PAGE 3
032 000000 134
033 000000 620
034 000000 Y
035 000000 24
036 A000000 N
036 B000000 0
038 000000 0
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 533
044 000000 0
055 A000000 N
055 B000000 N
062 A000000 Y
062 B000000 0.0
062 C000000 0.5
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 100.3
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 -0.8
063 A000000 0
063 B000000 26.9
064 A000000 Y
064 B000000 N
066 A000000 N
071 A000000 69407
071 B000000 78927
071 C000000 267634
071 D000000 26
072 A000000 12
072 B000000 19138
072 C000000 0
072 D000000 0
072 E000000 0
<PAGE> PAGE 4
072 F000000 1224
072 G000000 0
072 H000000 0
072 I000000 394
072 J000000 26
072 K000000 0
072 L000000 0
072 M000000 9
072 N000000 39
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 9
072 S000000 0
072 T000000 533
072 U000000 0
072 V000000 0
072 W000000 23
072 X000000 2257
072 Y000000 0
072 Z000000 16881
072AA000000 434
072BB000000 0
072CC010000 0
072CC020000 1721
072DD010000 16421
072DD020000 473
072EE000000 0
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 2
074 B000000 0
074 C000000 1250
074 D000000 271981
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 1692
074 M000000 17
074 N000000 274942
074 O000000 3243
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
<PAGE> PAGE 5
074 R030000 0
074 R040000 603
074 S000000 0
074 T000000 271096
074 U010000 23000
074 U020000 1074
074 V010000 0.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 20212
074 Y000000 19777
075 A000000 0
075 B000000 268524
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 C000000 14000
081 A000000 Y
081 B000000 26
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
SIGNATURE ARTHUR S. FILEAN
TITLE V. PRES & SECRETARY
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 274,024,119
<INVESTMENTS-AT-VALUE> 273,231,351
<RECEIVABLES> 1,692,597
<ASSETS-OTHER> 16,781
<OTHER-ITEMS-ASSETS> 1,626
<TOTAL-ASSETS> 274,942,355
<PAYABLE-FOR-SECURITIES> 3,243,510
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 603,049
<TOTAL-LIABILITIES> 3,846,559
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 271,827,876
<SHARES-COMMON-STOCK> 22,999,811
<SHARES-COMMON-PRIOR> 23,089,297
<ACCUMULATED-NII-CURRENT> 1,535,479
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,474,791)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (792,768)
<NET-ASSETS> 271,095,796
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 19,137,829
<OTHER-INCOME> 0
<EXPENSES-NET> (2,256,517)
<NET-INVESTMENT-INCOME> 16,881,312
<REALIZED-GAINS-CURRENT> 434,186
<APPREC-INCREASE-CURRENT> (1,721,443)
<NET-CHANGE-FROM-OPS> 15,594,055
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (16,420,667)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,321,877
<NUMBER-OF-SHARES-REDEEMED> (4,575,851)
<SHARES-REINVESTED> 1,164,488
<NET-CHANGE-IN-ASSETS> 5,268,289
<ACCUMULATED-NII-PRIOR> 1,548,316
<ACCUMULATED-GAINS-PRIOR> (1,908,977)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,223,631
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,256,517
<AVERAGE-NET-ASSETS> 268,578,058
<PER-SHARE-NAV-BEGIN> 11.31
<PER-SHARE-NII> .70
<PER-SHARE-GAIN-APPREC> (.05)
<PER-SHARE-DIVIDEND> (.70)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.26
<EXPENSE-RATIO> .81
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 274,024,119
<INVESTMENTS-AT-VALUE> 273,231,351
<RECEIVABLES> 1,692,597
<ASSETS-OTHER> 16,781
<OTHER-ITEMS-ASSETS> 1,626
<TOTAL-ASSETS> 274,942,355
<PAYABLE-FOR-SECURITIES> 3,243,510
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 603,049
<TOTAL-LIABILITIES> 3,846,559
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 271,827,876
<SHARES-COMMON-STOCK> 1,031,289
<SHARES-COMMON-PRIOR> 416,214
<ACCUMULATED-NII-CURRENT> 1,535,479
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,474,791)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (792,768)
<NET-ASSETS> 271,095,796
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 19,137,829
<OTHER-INCOME> 0
<EXPENSES-NET> (2,256,517)
<NET-INVESTMENT-INCOME> 16,881,312
<REALIZED-GAINS-CURRENT> 434,186
<APPREC-INCREASE-CURRENT> (1,721,443)
<NET-CHANGE-FROM-OPS> 15,594,055
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (470,574)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 722,764
<NUMBER-OF-SHARES-REDEEMED> (141,657)
<SHARES-REINVESTED> 33,968
<NET-CHANGE-IN-ASSETS> 5,268,289
<ACCUMULATED-NII-PRIOR> 1,548,316
<ACCUMULATED-GAINS-PRIOR> (1,908,977)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,223,631
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,256,517
<AVERAGE-NET-ASSETS> 268,578,058
<PER-SHARE-NAV-BEGIN> 11.29
<PER-SHARE-NII> .61
<PER-SHARE-GAIN-APPREC> (.05)
<PER-SHARE-DIVIDEND> (.62)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.23
<EXPENSE-RATIO> 1.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 274,024,119
<INVESTMENTS-AT-VALUE> 273,231,351
<RECEIVABLES> 1,692,597
<ASSETS-OTHER> 16,781
<OTHER-ITEMS-ASSETS> 1,626
<TOTAL-ASSETS> 274,942,355
<PAYABLE-FOR-SECURITIES> 3,243,510
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 603,049
<TOTAL-LIABILITIES> 3,846,559
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 271,827,876
<SHARES-COMMON-STOCK> 42,922
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 1,535,479
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,474,791)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (792,768)
<NET-ASSETS> 271,095,796
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 19,137,829
<OTHER-INCOME> 0
<EXPENSES-NET> (2,256,517)
<NET-INVESTMENT-INCOME> 16,881,312
<REALIZED-GAINS-CURRENT> 434,186
<APPREC-INCREASE-CURRENT> (1,721,443)
<NET-CHANGE-FROM-OPS> 15,594,055
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,908)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 42,812
<NUMBER-OF-SHARES-REDEEMED> (156)
<SHARES-REINVESTED> 266
<NET-CHANGE-IN-ASSETS> 5,268,289
<ACCUMULATED-NII-PRIOR> 1,548,316
<ACCUMULATED-GAINS-PRIOR> (1,908,977)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,223,631
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,256,517
<AVERAGE-NET-ASSETS> 268,578,058
<PER-SHARE-NAV-BEGIN> 11.27
<PER-SHARE-NII> .47
<PER-SHARE-GAIN-APPREC> (.08)
<PER-SHARE-DIVIDEND> (.45)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.21
<EXPENSE-RATIO> 1.18
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Report of Independent Auditors on Internal Control Structure
Board of Directors and Shareholders
Princor Government Securities Income Fund, Inc.
In planning and performing our audit of the financial statements of Princor
Government Securities Income Fund, Inc. for the year ended October 31, 1996, we
considered its internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on the internal control
structure.
The management of Princor Government Securities Income Fund, Inc. is responsible
for establishing and maintaining an internal control structure. In fulfilling
this responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of internal control structure
policies and procedures. Two of the objectives of an internal control structure
are to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition and
that transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
October 31, 1996.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
ERNST & YOUNG
Des Moines, Iowa
November 27, 1996