The delivery of basic social services is one of the most effective ways of combating poverty. The annual budget of every country must include an adequate allocation for basic social services (BSS) because it is believed that the amount spent on basic social services is an important input to human development. From 1985 to 2005, budgetary allocations for education, health services, and social services in Region XI showed significant changes. Over the same period, a little drop in the annual budget for BSS caused the Human Development Index (HDI) of Region XI to drop to low level. This paper found a high correlation and interaction between the BSS and the HDI of Region XI. Further, it developed a socio-economic model (LAG model) that best guides the projection of budgetary allocations for BSS that will effect human development.