The Third G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the Indian Presidency was held during 17-18 July 2023 in Gandhinagar, Gujarat. The meeting was jointly chaired by Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman, and Governor, Reserve Bank of India, Shri Shaktikanta Das.
Over 500 delegates, including Finance Ministers and Central Bank Governors from G20 member countries, Invitee Countries, and Heads of various International Organisations (IOs) participated in the meeting. The FMCBG meeting was preceded by the Third G20 Finance and Central Bank Deputies (FCBD) meeting during 14-15 July 2023 in Gandhinagar, Gujarat.
Under the Indian Presidency’s theme of “One Earth, One Family, One Future”, G20 Ministers and Governors pledged to prioritise the well-being of the people and the planet and reaffirmed their commitment to enhancing international economic cooperation, strengthening global development for all and steering the global economy towards strong, sustainable, balanced, and inclusive growth (SSBIG).
The meeting was organised in five thematic sessions covering Global Economy and Global Health, Sustainable Finance and Infrastructure, International Financial Architecture, International Taxation, and Financial Sector & Financial Inclusion.
The Union Finance Minister, in her welcome remarks, reiterated the collective responsibility of G20 to steer the global economy towards strong, sustainable, balanced, and inclusive growth. The meeting discussed the key deliverables of the Finance Track under the Indian G20 Presidency for 2023. The Indian Presidency received wide support on all the agenda items.
Members discussed the global economic outlook and risks, including macroeconomic implications of food and energy insecurity as well as climate change. Members endorsed the ‘G20 Report on Macroeconomic Risks Stemming from Climate Change and Transition Pathways’.
Under the priority of strengthening Multilateral Development Banks (MDBs) to address global challenges of the 21st century, members recognised the urgent need to strengthen and evolve the MDB ecosystem. Members appreciated the efforts of the G20 Independent Expert Group on Strengthening MDBs constituted by the Indian Presidency earlier this year. The Expert Group has prepared Volume 1 of the Report, and Volume 2 is expected in October 2023. Noting Volume 1’s recommendations, members shared that the MDBs may choose to discuss these recommendations to enhance their effectiveness. A High-Level Seminar will be held on the sidelines of the Fourth FMCBG meeting in October 2023 on strengthening the financial capacity of MDBs. G20 members also endorsed a ‘Roadmap for Implementation of Recommendations of the G20 Independent Review of MDBs’ Capital Adequacy Frameworks (CAF)’. This Roadmap will help unlock more lending resources in MDBs.
Managing global debt vulnerabilities is a significant priority area for 2023, reflecting the Indian Presidency’s endeavor to voice the concerns of the Global South. G20 Members have actively deliberated on how to strengthen multilateral coordination to effectively address the deteriorating debt situation and facilitate coordinated debt treatment for debt-distressed countries. G20 Members welcomed the progress achieved on various ongoing debt treatment cases under the Common Framework and beyond, and called for swift and timely resolution of these cases. They also emphasised the importance of addressing debt vulnerabilities in low and middle-income countries in an effective, comprehensive and systematic manner. The G20 encouraged the efforts of the Global Sovereign Debt Roundtable (GSDR) towards strengthening communication among key stakeholders to facilitate effective debt treatment. The GSDR is chaired by India, IMF and the World Bank.
