OBJECTIVE： To evaluate the economic efficiency of the Guangzhou government’s free vaccination of influenza vaccine for elderly people over 60 years old from perspective of government， and to provide reference for decision-making department. METHODS： The static budget impact analysis model was constructed to estimate the healthcare expenses of self-paid vaccination and free vaccination， and analyze the change of total government expenditure. RESULTS： The healthcare costs by government was estimated to be 40 785 594 yuan when the influenza vaccination was self-paid； it would rise up to 54 744 715 yuan when the government provided the influenza vaccine freely， so the government needed to invest more than 13 959 121 yuan each year， but influenza patients could be reduced by about 39 845 people. The sensitivity analysis showed that the health cost additionally invested by government was not more than 20 million yuan every year. CONCLUSIONS： It is economical for the government of Guangzhou to provide free vaccination for elderly people over 60 years old. If the government is financially affordable， it may consider providing free influenza vaccine for the elderly in the city so as to protect the elderly from influenza and its complications to a greater extent.