Market correction could help ease N.B. deficit projections: Boudreau

Finance Minister Victor Boudreau says a surge in stock markets could help the province erase a portion of its monstrous deficit.

Boudreau said he doesn't have any estimate yet of how much lower the projected $740-million deficit will be, but indicated that recent market gains would improve the province's pension investments.

The finance minister said those market gains will help ease the deficit pain because the province won't have to spend as much topping up pension funds.

"I hope we see that upward trend. If the markets can correct faster than we anticipated and estimated when we put our budget together, well then the overall situation will improve," Boudreau said.

"If the market does worse than what we estimated, it could be worse. That's why budgets are based on estimates and projections."

The province is attributing roughly $300 million of the planned deficit to pension losses.

The value of the Toronto Stock Exchange's main index has increased by 20 per cent since Boudreau's budget projected a $740-million deficit two months ago.