From global taxation to crypto: Key takeaways from FM Sitharaman's speech on G20 outcome

G20 Summit 2023: Soon after Prime Minister Narendra Modi announced that G20 members had unanimously adopted the 'Delhi Declaration', Finance Minister Nirmala Sitharaman on Saturday listed major achievements under the finance track during India's presidency of the group. During a press conference held at the Bharat Mandapam Convention Centre, where the high-profile summit is being held, the finance minister said New Delhi endeavoured to support countries, especially of the global south, and that "India had walked the talked".

Also Read: 'This is real big deal,' says Biden as India-Middle East-Europe connectivity corridor launched at G20 Summit

Sitharaman said India assumed the G20 presidency at a challenging time of geo-political tension. But, she said, New Delhi ensured that divergences didn't overshadow developmental concerns of the global economy. 

Listing the achievement, the finance minister said that the members had agreed on the need for a better, bigger, and more effective Multilateral Development Banks (MDBs). "G20 Independent expert group of strengthening MDBs has submitted its Volume 1. The report recommends a triple agenda for bigger better and more effective MDBs," she said, adding that the member countries have also agreed to collectively work with the World Bank to boost the world economy.

Also Read: Consensus reached at G20, 'New Delhi Declaration' adopted, announces PM Modi

Sitharaman said that an independent panel on capital adequacy framework (CAF) has recommended supporting reforms of MDBs. "The roadmap estimates that implementation of CAF will yield additional lending of $200 bn over the next decade," She said.

The finance minister also informed that global consensus was emerging on the crypto asset issue. "Presidency will support IMF (International Monetary Fund) and FSB (Financial Stability Board) that are setting the contours of the regulatory framework for crypto assets," she said.

Also Read: G20 Presidency to support global regulatory framework for crypto: FM Nirmala Sitharaman

The 'Delhi Declaration', which was adopted today, states that G20 countries continue to closely monitor the risks of the fast-paced developments in the crypto asset ecosystem. "We endorse the Financial Stability Board’s (FSB's) high-level recommendations for the regulation, supervision, and oversight of crypto-assets activities and markets and of global stablecoin arrangements."

Sitharaman also talked about global taxation, saying the member countries made substantial progress on two-pillar solutions. While she did not elaborate on it further, the 'Delhi Declaration' stated that G20 members remained committed to the swift implementation of the two-pillar international tax package.

Also Read: 'Use or threat of use of nuclear weapons is inadmissible,' says G20 'New Delhi Declaration' on Ukraine

"Significant progress has been made on Pillar One including the delivery of a text of a Multilateral Convention (MLC), and work on Amount B (framework for simplified and streamlined application of the arm’s length principle to in-country baseline marketing and distribution activities) as well as the completion of the work on the development of the Subject to Tax Rule (STTR) under Pillar Two."

Sitharaman also said that good progress was made on debt vulnerabilities in developing countries, and succeeded in using the G20 framework to address the debt situation of Zambia, Ghana, Ethiopia, and Sri Lanka.

Besides these, the G20 members also agreed on a mechanism to support the adequate mobilisation of resources on climate finance. She said: "The Indian Presidency adopted an action-oriented approach to support timely mobilisarion of resources for climate finance."