President Xi Jinping has said China will further streamline revenue division between central and local governments, according to a copy of his explanation on a key Communist Party of China (CPC) document published on Friday.

The four-day Third Plenary Session of the 18th CPC Central Committee upon its conclusion on Tuesday adopted the CPC Central Committee "decision on major issues concerning comprehensively deepening reforms."

Entrusted by the Political Bureau of the CPC Central Committee, Xi, also general secretary of CPC Central Committee, explained the decision to the Party session, which ran from Nov. 9 to 12.

Xi said reforms of fiscal and taxation systems, one of the key aspects in China's reform, mainly involve improvement of budgeting and taxation systems as well as the establishment of a mechanism that makes powers of government bodies match their expenditure responsibilities.

The Party session agreed that China will implement a comprehensive, transparent budgeting system and the powers and expenditure responsibilities belonging to the central government will be enhanced "moderately," Xi said.

National defense, foreign affairs, national security, and aspects concerning nationwide market rules and management, fall within the scope of powers of the central government, Xi said.

In areas where the central and local governments share powers, such as certain social security and trans-region key projects, central-local government power relations will be further streamlined, he added.

Xi said the central government may entrust part of its powers and expenditure responsibilities to local governments through transfer payment, and it may also bear part of the powers and expenditure responsibilities belonging to local governments regarding trans-region, influential public services.

The reform aims to create a modern fiscal system that supports the initiative of both central and local authorities, he said.