G20 finance ministers, central bank governors to discuss finance, taxation at February meet

New Delhi : Finance ministers and central bank governors of G20 nations will hold their first meeting during India’s presidency of the group in February 2023 to discuss financing issues in sectors like infrastructure and health in addition to international tax matters, said Ajay Seth, economic affairs secretary in the finance ministry.

In a video address shared by the finance ministry, Seth said that discussions are going to start first at the level of finance deputies this week and later, a meeting of the G20 finance ministers and central bank governors has been planned in February 2023 in Bengaluru.

The first meeting of G20 finance and central bank deputies, a two-day event, starting 13 December, will mark the start of discussions on the finance track agenda under the Indian G20 Presidency. This meeting will be hosted jointly by the finance ministry and the RBI. The G20 finance track, led by finance ministers and central bank governors, focuses on economic and financial issues and provides a forum for global economic discourse and policy coordination, the finance ministry said in a statement. The first finance ministers and central bank governors meeting, also a two-day event, will be held in Bengaluru starting 23 February.

“We are going to have focused discussions over a wide range of contemporary and forward looking issues. These include global economic issues, strengthening the international financial architecture, financial sector issues such as financial inclusion, infrastructure financing, health financing, sustainable financing and international taxation,” said Seth.

The ministry’s statement said meeting of finance and central bank deputies this week will be co-chaired by Seth and Michael D. Patra, deputy governor of RBI. Their counterparts from G20 member countries, and from several other countries and representatives of global bodies will participate in the meeting.

The G20 finance track discusses key issues of relevance for the global economy. At the Bengaluru meeting, discussions will focus on the agenda for the finance track under the Indian G20 Presidency.

This includes reorienting international financial institutions to meet the shared global challenges of the 21st century, financing cities of tomorrow, managing global debt vulnerabilities, advancing financial inclusion and productivity gains, financing for climate action and sustainable development goals, a globally coordinated approach to unbacked crypto assets and advancing the international taxation agenda, the ministry statement said.

On the sidelines of the meeting, a panel discussion will be held on ‘strengthening multilateral development banks to address shared global challenges of the twenty first century’. A seminar on the ‘role of central banks in green financing’ will also be held, the statement said.

About 40 meetings of the finance track will be held in several locations in India. These discussions will ultimately be reflected in the G20 leaders’ declaration, the statement said.

A key role of the G20 is to provide guidance in dealing with challenges such as scarring from the covid-19 pandemic, sharpened geopolitical tensions, rising food and energy security concerns, growing debt distress, inflationary pressures, and monetary tightening, finance ministry said.

During India’s G20 presidency, supporting the countries most in need and reflecting the concerns and aspirations of developing countries will be at the forefront of the efforts, the ministry said, adding that it will steer G20’s finance track agenda with the RBI in an inclusive manner.