NEW DELHI: The first Finance Track meeting of G20 saw broad support for India’s proposed priorities for the G20 finance agenda for 2023. Over the course of two days, seven discussion sessions and two side events were organised. Wide- ranging issues, such as global economy, International Financial Architecture, Infrastructure, Sustainable Finance, International Taxation, and Financial Inclusion, were deliberated upon Economic Affairs Secretary Ajay Seth, along with Michael Patra, Deputy Governor, Reserve Bank of India, co-chaired the meeting that took place on December 13-14 in Bengaluru.
During a discussion session on International Taxation, delegates took stock of the Two-Pillar Tax Package, which is being developed with the aim to enhance tax transparency and multilateral capacity-building on taxation.
It was proposed that 2023 onwards, multinational companies should be subjected to a minimum 15 per cent tax rate. Among other things, this would help governments address the challenges of taxing tech firms. The session on Global Economy and Framework Working Group priorities, discussed global inflation, food and energy insecurity and macroeconomic implications of climate change.
India’s priorities for the Infrastructure Working Group 2023 were discussed during the Infrastructure session. It was agreed that during its G20 tenure, Indian will focus on inclusive, resilient and sustainable urbanisation. A need for greater financial inclusion through a people-centric approach was agreed upon during the session on Financial Sector & Financial Inclusion.
In the Sustainable Finance session, climate action to facilitate the development of a sustainable and resilient global economy and financing for Sustainable Development Goals (SDGs) were discussed.
Deliberations on future course of action on issues like global debt distress, capital flows and global financial safety net, took place during the session on International Financial Architecture. Delegates agreed on a needed for strengthening Multilateral Development Banks (MDBs).
A greater need for coordination between Finance and Health Ministries for Pandemic Prevention Preparedness and Response (PPR) was emphasised in Global Health session. A consensus was reached on boasting inclusion of regional organisations to empowering voice of low-income countries.
The first G20 Finance and Central Bank Deputies (FCBD) meeting saw a gathering of over 160 foreign delegates, including Deputies from G20 member countries, invitee countries, and International organisations.
The significance of these meetings lies in the fact that it will pave the way for the First G20 Finance Ministers and Central Bank Governors Meeting scheduled in February 2023 in Bengaluru.
