The Budget rule: reducing oil dependence

Abstract

The article explores a way to reduce the dependence of the national currency on oil prices. A retrospective analysis of the data showed a close correlation between the ruble, the US dollar and the price of oil in the international market. Since 2004, a budget rule has been in effect in Russia, imposing a long-term restriction on budget policy through quantitative restrictions on budget indicators. The study analyzes the limitations of the budget rule in the Russian Federation in various periods and its results. The authors conducted a comparative analysis of foreign experience in reducing dependence on petrodollars on the basis of five reserve funds. The study demonstrates that the budget rule could be one of the possible measures to reduce the dependence of the national currency on oil prices.