Purpose: This study was conducted to determine the prevalence rate of depression and the associated factors affecting the depression among the elderly beneficiaries of the national basic livelihood scheme. Methods: From the beneficiaries of the "visiting health care program" in a city the beneficiaries (aged 65 years or older) of the national basic livelihood scheme were selected. A total of 677 subjects were included in the study and hence for data analyses. Results: The observed prevalence rate of depression was 80.5% (mild depression was 60.2%, and severe depression was 20.3%). The factors influencing depression were indicative of subjective health status, walking exercise, hypertension, and diabetes. Conclusion: On the basis of our study results, as a strategy to reduce the prevalence rate of depression among the elderly concerned, we are of the opinion that it is very much necessary to motivate them to practice continuous and regular walking exercises in easily accessible places by mobilizing community resources such as visiting nurses and volunteers. Such efforts may not only immediately reduce the morbidity rate of depression among the low-income elderly, but also, in the long run, prevent suicides and contribute to improving their mental health status to an appreciable extent.