Rising oil prices may give Liberals extra spending for next Ottawa budget

The federal government is expected to reap significant increases in revenue due to high oil prices, offsetting any new or previously promised spending in an upcoming budget from Ottawa.

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. It was quickly eaten up by $28.4 billion in new and previously promised spending.

Since then, oil prices have gone even higher than the Finance Department had envisioned, with no immediate signs of easing.

The jump could lower the federal deficit by as much as $5