The Federation of Indian Chambers of Commerce and Industry on Tuesday asked the government to accelerate the divestment and privatisation programme to meet increased spending on health and education and cautioned against levying of cess for expenditure on these sectors.

Welcoming the allocation of six per cent of GDP for education, the chamber, however, cautioned against levying a separate cess for the purpose and proposed acceleration of divestment and privatisation programme to meet the socio-economic expenditure.

"The target of Rs 25,000 crore (Rs 250 billion) per annum through divestment proceeds can be easily met and this should be credited to a fund dedicated for the socio-economic development," FICCI President Y K Modi said in a statement.

Terming the draft common minimum programme as "comprehensive and well rounded endeavour to promote rapid economic growth," the chamber said the government should look at a higher growth target of 10 per cent.

"The government should look at targetting 10 per cent GDP growth as stated in the Congress manifesto. A 10 per cent growth would provide 3.9 million agricultural jobs, 25.8 million industrial jobs and 30.4 million services jobs, thereby addressing the requirement of 60 million jobs needed over the next five years," it said.

The CMP would increase the competitiveness of the Indian economy by nurturing entrepreneurial and creative energies, improve the investment climate and accelerate India's engagement with the global economic system, Modi added.

Modi also suggested that the additional expenditure on education should be met through allocation of funds from regular tax revenues.          

He sought phasing out of subsidy on higher education and transfer of funds to primary education as "higher education could rely on private funds."

Soft loans and scholarships could be provided to poor but deserving students, he added.

The chamber also suggested the Kerala model where private participation in primary and secondary education was allowed.