All the assumptions made for the development of public sector comparator model shall be clearly identified. The model shall usually cover several areas such as:
• Inflation percentage. The percentage of inflation on all the anticipated future cash flows shall be predicted.
• Deduction percentage: Means the deduction made on future cash flows based on the present values through application of certain deduction percentage. The federal Entity shall consult with the Ministry to develop a suitable deduction percentage.
• Consumption: It is not put within the public sector comparator models since those models are calculated on cash flows, not on other accounts.