BEIJING - A modern financial system that supports the initiative of both central and local authorities should be set up, a communique issued Tuesday after a key meeting of the Communist Party of China (CPC) said.

China needs to improve its budget management and taxation systems in a bid to make responsibilities of government agencies match properly with what they spend, the communique said.

It is essential that China improves related legislation, ascertains government bodies' responsibilities, reforms the taxation system and ensures budgeting is transparent.

The document was adopted by the Third Plenary Session of the 18th CPC Central Committee held from November 9 to 12 in Beijing.