Aswe all know, cultural products belong to quasi-public goods, with a typicalexternality. Therefore, only relying on market forces to develop the culturalindustry is not enough. Cultural industry needs the government to providestrong support and guidance. Shanghai as China's most economically developedregions, although its cultural industry has made some progress in recent years,the situation of development is just passable. In the long term, thedevelopment potential of cultural industry is needed to be deeply digged. Thispaper from the background of the development of cultural industry in Shanghai,analyzes the real problems existing in the development of cultural industry inShanghai to further explore how public finances to better promote the developmentof cultural industry, to provide the impetus for the positive and healthydevelopment of Shanghai's cultural industry, in order to promote the pace ofeconomic ahead.