Budget 2007-08 is set to see a major increase in the United Progressive Alliance government's spending on the social sector, in line with its political commitments.

Overall, the Planning Commission has set a 27 per cent increase in the gross budgetary support for 65 central ministries and departments for 2007-08, which stands at Rs 1,66,226 crore (Rs 1,662.26 billion), against the Budget estimate of Rs 1,31,286.53 crore (Rs 1,312.86 billion) for 2006-07.

The allocations will be finalised by the finance ministry and announced in the Budget on February 28.

An analysis of the recommended GBS suggests that the cornerstone of the Budget will be an increased focus on minorities and the rural development agenda.

Of the 65 ministries and departments (which exclude the petroleum ministry), 54 will see a hike in allocation of up to 100 per cent or more.

The remaining 11 will see a reduction of between 7 and 70 per cent in the GBS, with the largest cut faced by the department of public enterprises, followed by the department of consumer affairs.

The GBS for the urban development ministry will be raised by over 100 per cent to Rs 3,516 crore (Rs 35.16 billion), against Rs 1,753 crore (Rs 17.53 billion) in 2006-07.