The separation of governmental budget implementation from budget composition is the key defect in China’s public budget management, China should establish and perfect its budget system by setting up dynamic monitoring system of government budget implementation, realize the consistent public budget implementation with budget composition, satisfy public selection predilection to the most extent and lay the foundation for future government budget management mode change from process control type to result performance type. Management technology innovation is the core content for dynamic monitoring system construction of government budget implementation, however, the core content of management technology innovation is institutional design while the implementation of the institution in management practice depends on the mechanism optimization. Currently, the institution design innovation of dynamic monitoring management technology for budget implementation of Chinese Government mainly lies in relative basic institutions perfection, horizontal institution combination, interactive reform as well as the innovation and perfection of the monitoring institution system, however, the mechanism optimization of dynamic monitoring management technology of government budget implementation should take the increasing of problem mining capacity and the improving of problem-solving efficiency as the core.