OTTAWA—The federal government may find itself with billions more in spending room on the back of soaring oil prices that experts say could lower the deficit, or give the Liberals space to fund a bevy of campaign pledges.
It’s a position similar to one the Liberals found themselves in last December when a rosier economic picture gave the government $38.5 billion in extra spending room, which was quickly eaten up by $28.4 billion in new and previously promised spending.
