I have drilled barrels out for liners using spade bits pulled through the bore but there are several caveats.
Important to bevel the back corner of the bit to prevent the bit digging in and jamming when withdrawing. (I speak from experience)
important to remove the bit every 1/4" or so to clear chips
important to go up in small increments of around .020" per step to prevent breaking the bit off of the shaft.
A spade bit pulled through the bore will follow the bore but you are almost force to do the work in a lathe. You also require the lathe for making the bits in the first place.
cheers mooncoon