Context: Recently, the Union Finance Minister has said that the G20 Action Plan is an expression of collective commitment to fight COVID-19 pandemic and it should remain relevant and effective as the crisis evolves.
Significance of G20 Action Plan

• It covers the healthcare, economic and fiscal responses that G20 members have agreed to undertake.
• It includes measures to ensure a return to a strong and sustainable global economy, the provision of support to countries in need.
• It aims to protect lives, safeguard people's jobs and incomes, restore confidence, preserve financial stability, revive growth and recover stronger, minimize disruptions to global supply chains, provide help to all countries in need of assistance and coordinate on public health and financial measures.
• It has the utmost importance to provide bridges to households and businesses to ensure that COVID-19 do not cause long-term damage to domestic economies or global economy.
• It is also launched to provide, support to minimize the economic and social damage, restore global growth, maintain market stability and strengthen resilience by supporting jobs and household incomes.
• The G20 members will work closely together to promote and sustain a successful global economic recovery.

Implementation of G20 Action Plan

• Delivering a Comprehensive IMF Support Package and Using Available Tools From RFAs: Because of the outbreak for a temporary period, the access limit to the IMF emergency facilities is doubled and this measure is aimed to provide financial support to the countries on urgent balance-of-payments needs.
• Implementing Swiftly the Support Proposed by the World Bank and Regional Development Banks: Measures taken by the Multilateral Development Banks encouraged in the Communiqué and more than USD 200 billion dedicated to financing the emerging and low-income countries.
• Providing Debt Service Suspension for the Poorest Countries: G20 countries will support the time-bound suspension of debt service payments for the poorest countries that request forbearance.
• Ensuring Efficiency and Operational Coordination to Optimize the Use of Resources: All national and international organizations (IMF, World Bank and Regional Development Banks etc.) will report regularly regarding the fate of the funds.