A report from a Calgary economist that examined the long-term financial projections for the province was released on Tuesday and shows Alberta could be heading towards a massive deficit by 2040.

Alberta’s Long-Term Fiscal Future was released by The School of Public Policy and Economist Trevor Tombe at a press conference downtown and is touted as the ‘most comprehensive report on Alberta’s finances that has ever been prepared.’

The report examined long-term projections for resource royalties, federal transfer payments, investment income, property taxes and other sources of revenue and spending.

The publication says Alberta’s fiscal policies are ‘unsustainable’ and that the provincial deficit could grow to $40 billion by 2040.

The paper points out that a massive deficit combined with capital investments could raise the ratio of net debt to GDP to close to 50 percent by 2040 and that interest payments could increase to over $22 billion by then.

Tombe says Alberta could create a sustainable economic future with a combination of restrained spending growth and modest new revenues instead of focusing on increasing taxes and slashing spending.

The report also offers recommendations for how the government can head-off a possible fiscal crisis.

To view the complete report, click HERE or scroll the document below.