24F-2NT

                      Putnam Balanced Government Fund
                          One Post Office Square
                       Boston, Massachusetts  02109


                             January 27, 1995



Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.  20549-1004
Via EDGAR

RE:  Rule 24f-2 Notice for Putnam Balanced Government Fund
    (Reg. No. 33-37991) (the "Fund")

Ladies and Gentlemen:

    Pursuant to Rule 24f-2 under the Investment Company Act of
1940, you are hereby notified as follows:

    (a)  the fiscal year of the Fund for which this notice is
    filed is the year ended November 30, 1994.

    (b)  the number or amount of securities of the same class or 
    series of the Fund which had been registered under the
    Securities Act of 1933 other than pursuant to Rule 24f-2 but 
    which remained unsold at the beginning of the year was: 
    NONE.

    (c)  the number or amount of securities the Fund registered
    during such fiscal year other than pursuant to Rule 24f-2
    was:  NONE.  

    (d)  the number or amount of securities of the Fund sold
    during such fiscal year was: 9,377,815 shares. 

    (e)  the number or amount of securities of the Fund sold
    during such fiscal year in reliance upon registration
    pursuant to Rule 24f-2 was:  9,377,815 shares.*   

    We are including in this filing, as an exhibit, an opinion
of counsel for the Fund to the effect that the securities, the
registration of which this notice makes definite in number, were
legally issued, fully paid and non-assessable.  

Securities and Exchange Commission
January 27, 1995
Page Two




                   Very truly yours,

                   Putnam Balanced Government Fund


                        /s/ John D. Hughes
                   By:  ------------------------- 
                        John D. Hughes
                        Vice President and Treasurer


- -----------------------------------------------------------------
*Calculation of filing fee pursuant to Rule 24f-2(c):



(1)  Aggregate sales price of securities
     sold pursuant to Rule 24f-2 during the
     fiscal year (see Para. (e) above):

$                                                                45,151,001



(2)  (a)  Aggregate redemption or repurchase
          price of securities redeemed or
          repurchased during fiscal year: 

$                                                                82,007,609


     (b)  Amount previously applied during
          fiscal year:

NONE


     (c)  Available credit:
$                                                                82,007,609


     (d)  Amount of available credit applied
          in this notice:

$                                                                45,151,001



- -----------------


(3)  Securities deemed sold for filing fee
     calculation:
NONE




(4)  Filing fee due:  (1/29 of 1% of #3):
NONE


         




S:\SHARED\FUNDS\NEW\A7624FNO.1

EX-99.COUNSELOPIN

                               ROPES & GRAY
                          One International Place
                     Boston, Massachusetts 02110-2624
                              (617) 951-7000

                             January 23, 1995

Putnam Balanced Government Fund
One Post Office Square
Boston, Massachusetts 02109

Ladies and Gentlemen:

     We are furnishing this opinion in connection with the sale
during the fiscal year ended November 30, 1994 of 9,377,815
shares of beneficial interest (the "Shares") of Putnam Balanced
Government Fund (the "Fund").

     We understand that on your books you record as sold Shares
for which orders have been accepted notwithstanding that on the
date of acceptance such Shares may not have been paid for, and
that for purposes of compliance with Rule 24f-2 (the "Rule")
under the Investment Company Act of 1940, as amended, you regard
such Shares as having been sold.

     We have examined copies of (i) your Agreement and
Declaration of Trust as on file at the office of the Secretary of
State of The Commonwealth of Massachusetts, which provides for an
unlimited number of authorized shares of beneficial interest, and
(ii) your Bylaws, which provide for the issue and sale by the   
Fund of such Shares.  We have also examined (i) a copy of the
notice (the "Notice") to be filed pursuant to the Rule by you
with the Securities and Exchange Commission relating to your
registration of an indefinite number of shares of beneficial
interest of the Fund pursuant to the Securities Act of 1933, as
amended, and making definite registration of the Shares pursuant
to the Rule, and (ii) a certificate of the Treasurer of the Fund
stating that 9,375,700 of the Shares had been recorded as issued
and that the appropriate consideration therefor as provided in
your Bylaws had been received at November 30, 1994, and that
2,115 of the Shares had been recorded as sold and issued on your
books at November 30, 1994, but that at that date payment had not
been received and was not then due in the ordinary course of
business.

     We assume that appropriate action has been taken to register
or qualify the sale of the Shares under any applicable state and
federal laws regulating offerings and sales of securities, and
that the Notice will be timely filed with the Securities and
Exchange Commission.


ROPES & GRAY
                                    -2-
Putnam Balanced Government Fund                            January 23, 1995

     Based upon the foregoing, we are of the opinion that:


     1.  The Fund is a legally organized and validly existing
voluntary association with transferable shares of beneficial
interest under the laws of The Commonwealth of Massachusetts and
is authorized to issue an unlimited number of shares of
beneficial interest.

     2.  The Shares were validly issued and, except for the  
2,115 Shares for which payment had not been received at November
30, 1994 and was not then due in the ordinary course of business,
were fully paid and nonassessable by the Fund at November 30,
1994.

     The Fund is an entity of the type commonly known as a
"Massachusetts business trust".  Under Massachusetts law,
shareholders could, under certain circumstances, be held
personally liable for the obligations of the Fund.  However, the
Agreement and Declaration of Trust disclaims shareholder
liability for acts or obligations of the Fund and requires that
notice of such disclaimer be given in each agreement, obligation
or instrument entered into or executed by the Fund or its
Trustees.  The Agreement and Declaration of Trust provides for
indemnification out of the property of the Fund for all loss and
expense of any shareholder of the Fund held personally liable for
the obligations of the Fund solely by reason of his being or
having been a shareholder of the Fund.  Thus, the risk of a
shareholder incurring financial loss on account of shareholder
liability is limited to circumstances in which the Fund itself
would be unable to meet its obligations.

     We consent to this opinion accompanying the Notice.

                              Very truly yours,



                              Ropes & Gray





S:\SHARED\FUNDS\NEW\A76OPIN.1