Soaring inflation has strained household and business finances for the past 16 months, hitting a 40-year high last June and sparking promises from state officials this month to support another round of tax cuts.

But there’s a silver lining to the rising cost of goods and services.

Higher inflation means state government may be able to add up to $1 billion in new spending — or more — and still remain under the statutory spending cap. Lawmakers already are eyeing more resources for municipal aid, child care and public colleges and universities.

Read more: CT government can spend more as inflation soars. But should it?