NOTE 55 while the share of the Government of India seems to be as high as 43 per cent. Yet Tatas are in a position to control TISCO. This is typical of many large industrial houses which have mastered Hhe art of trading on government money and of those financial institutions owned or controlled by the government. This is also true of working capital. Nationalization of large commercial banks has not basically altered the pattern of industrial financing. Foreign collaboration in the core and investment goods sector is also showing an increasing trend. The overall picture is that the government has to mobilize resources partly to finance its own investments and partly to supplement savings in the organized private sector- This is also true of the agricultural sector to which large funds are pumped in for supporting agricultural development apart from augmenting short-term capital and open and hidden subsidies. The subsidies and rebates are even larger and more diversified in the case of organized industry. Thus, the rate of productive investment is largely constrained by the ability of the government to mobilize resources. Constraints an Resource Mobilisation During the first three plans an increasing proportion of plan finance was drawn from external sources. The relative decline of this source in recent years is mpre a result of certain shifts in international investment climate and financial stringencies than of any determined effort towards self-reliance. Increasing Soviet aid as a part of a long-term economic treaty may not be able to offset the shrinkage of funds from elsewhere. In fact, Soviet aid under the Fifth Plan may not be much more than 10-15 per cent of the projected foreign exchange gap. As for internal mobilization, it is sometimes alleged that labour gets more than it contributes to production. Facts speak otherwise. As for the agricultural sector, wages have trailed behind agricultural production and improvements in the relative prices of agricultural commodities. Even in industry, productivity has been rising faster than wages. In fact, the share of wages and salaries in value-added seems to have declined from 65 per cent in 1949 to 53.3 per cent in 1969. As for the wages of workers, the share seems to have declined from 53.3 per cent to 34.9 per cent. At the same time, the index of profit has kept on increasing especially during years of economic crisis. The Reserve Bank of India study corroborates this finding. According to the RBI study, the real income of workers declined from 30.8 per cent to 29 per cent over 1965-66 to 1970-71 while the share of property owners increased from 69.2 per cent to 71 per cent over the same period. The tragedy is that budgetary policies have continuously eroded the real incomes of the wage-earners and salaried employees. In the scheme of things, government is burdened with a large chunk of public utilities and other infrastructure facilities where profit-making is frowned upon by those who make use of the external economies conferred by them. It is also true that unless surpluses are generated through cost-reduction