Internal control in the government is a wide concept, and its connotation and nature are a logical starting point of promoting academic research and practice. Its connotation should focus on the administrative activities, and embody the basic characteristics of the management control. Analyses on the boundaries, goal orientation, design perspective and implementation effect are helpful to deeply understand its essence characteristics. Internal control in Chinese government should be based on economic activities as the boundary at present; the objectives should include assets and strategic objectives; the design perspective should be diversified; the control is an institutional innovation to the traditional administrative supervision mode. According to its nature and the characteristics of Chinese budget management, applying the government internal control-oriented budget mode, perfecting laws and regulations system, establishing reporting system, reasonably defining the control functions, nurturing the good control environment, and perfecting budget internal control evaluation system can promote the Chinese budget management.