Though the collection in October 2009 at Rs 235.18 crore was 19 per cent higher than the previous month, it was still 24 per cent lower than October 2008, indicating that economic activity in Karnataka continues to be sluggish. The month-wise collection data for the first seven months of 2009 also shows a great deal of fluctuation, ranging between Rs 172 crore and Rs 235 crore.
State Government sources said there was hardly any property purchase for investment purposes. This, they said, was primarily because there was no free floating money and only those with genuine necessity to buy property were entering into transactions.
Sources said that property deals have plummeted since banks and other lending institutions were putting stringent conditons and resorting to stricter scrutiny of individuals’ networth and paying capacity.
With the once lucrative IT sector resorting to salary cuts and lay-offs lately, even new recruits, who once used to purchase assets in a big way, have become cautious and adopting a wait and watch stand.
