Beijing, Nov 12 (IANS): 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, Xinhua reported citing the communique.

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 Nov 9-12 in Beijing.

The CPC also acknowledged the market's "decisive" role in allocating resources.

China will deepen its economic reform to ensure that the market will play a "decisive" role in allocating resources, according to the communique.

The Market had been often defined as a "basic" role in allocating resources since the country decided to build a socialist market economy in 1992.