The first meeting of the Group of Twenty (G-20) Finance Track, led by India, will begin Today in Bengaluru. It will include senior finance ministry bureaucrats and central bank deputies from member countries, or Finance and Central Bank Deputies (FCBD).
The Ministry of Finance and the Reserve Bank of India will co-host this meeting from December 13-15. The Sherpa Track meetings have already begun, with the first taking place earlier this month in Udaipur.
Landed in Bengaluru for G20 meetings and to a traditional welcome! Looking forward to productive engagements. pic.twitter.com/5OZxx8VOwa— Gita Gopinath (@GitaGopinath) December 12, 2022
What Is the G20 Finance Track?
G20 processes are separated into two parallel tracks: the finance track and the sherpa track. Finance ministers and central bank governors from member countries lead the finance track, which meets throughout the year. The sherpa track is led by sherpas, who are personal emissaries of leaders. They supervise negotiations throughout the year, discussing agenda items for the summit and coordinating the G20’s substantive work.
Within both tracks, working groups based on specific themes operate. Representatives from relevant ministries from both member countries and invited/guest countries are included. Working groups are also attended by representatives from the United Nations, the International Monetary Fund, and the Organization for Economic Cooperation and Development.
Finance Track Meetings
According to a Finance Ministry statement issued on Sunday, the G20 Finance Track provides an effective forum for global economic discourse and policy coordination.
The first meeting of Finance Ministers and Central Bank Governors will be held in Bengaluru from February 23-25.
Ajay Seth, Secretary, Department of Economic Affairs, and Michael D Patra, Deputy Governor of the Reserve Bank of India, will co-chair the upcoming meeting of G20 Finance and Central Bank Deputies. Their counterparts from G20 member countries, as well as representatives from several other nations and international organisations invited by India, will attend the two-day meeting.
What are The Meeting Expected to Cover?
The meeting is expected to cover a number of economic agenda items as well as prepare the pitch for the February meeting of Finance Ministers and Central Bank Governors. Reorienting international financial institutions to meet the shared global challenges of the twenty-first century, financing cities of the future, managing global debt vulnerabilities, advancing financial inclusion and productivity gains, financing for climate action and Sustainable Development Goals (SDG), a globally coordinated approach to unbacked crypto assets, and advancing the international taxation agenda will be discussed, a report by Business Standard explained.
A panel discussion on strengthening multilateral development banks to address shared global challenges of the twenty-first century will take place on the sidelines of the meeting. There will also be a seminar on the Role of Central Banks in Green Financing.
History of Finance Track
Because the powerful G-20 grouping was formed with the intention of governing the global economy, the Finance Track is older than the Sherpa Track. The Finance Track has five working groups that address issues such as infrastructure, climate and sustainable infrastructure financing, global taxation, debt levels and sustainability, particularly in low-income countries, multilateral institutions, cross-border financial crimes, and cryptocurrency and other digital asset regulation.
Finance Minister Nirmala Sitharaman has spoken about the Finance Track’s key focus areas. Last month, she stated that climate and sustainable development financing, multilateral institution reforms, digital asset regulation, the impact of western central bank actions on developing economies, energy and food security in the context of European war, and sanctions on Russia and their impact on the global economy could be on the agenda.
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