The Parliament approved the budget of ATIK for 2023

The Plenary of the Parliament unanimously approved with 38 votes in favor the budget of the Cyprus Telecommunications Authority (CTA) for 2023, which foresees total expenses of €575,722,580 and total revenues of €386,752,300, which will mainly come from the provision of services and products.

The budgeted expenses for the year 2023 show an increase of 32.5% compared to the year 2022, which is mainly due to the development program of the Authority, as the chairman of Cyta’s Board of Directors, Michalis Ioannidis, explained to KYPE

At the same time, there is an increase in expenses due to the provision for the implementation of an early retirement plan, the granting of increments to staff, the increased provision for hourly staff due to an increase in the indexation allowance and working hours, the increased cost of electricity, the new actions aimed at increasing of sales of the “Cytavision” service, in returns to telecommunication organizations, as well as in the purchase of equipment for resale.

The budgeted expenses for the year 2023 concern staff salaries and other benefits (€158,889,360), regular expenses other than salaries and other benefits (€175,042,720), capital expenses (€99,455,500), paid projects for third parties (€ 7,270,000), investments (€106,465,000), unforeseen expenses (€5,600,000), Pension Fund liability (€23,000,000).

Based on the income statement for the year 2023, a surplus before tax of €12.8 million and after tax of €10.5 million is forecast, compared to €46.7 million and €39.4 million .for the year 2022, respectively.

With reference to the obligations of ATIK to the Pension Fund, according to a more recent actuarial study of the organization’s Employee Pension Plan, an actuarial funding deficit on December 31, 2021 of €132.9 million is demonstrated, compared to €177.2 million on December 31 December 2020. Therefore, following a decision of the board of directors of ATIK, a provision for the payment of €23 million was included in the budget, as well as an adjustment of the employer’s contribution to 2.8% of wages, with a repayment period of 6.3 years , instead of 8.6 years that had been decided on the basis of a previous actuarial study.

Source: KYPE

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