The Faculty will increase by about $800,000 its allocation for financial aid in the 1976-77 budget, raising to approximately $8 million the sum available to Harvard and Radcliffe undergraduates, Robert E. Kaufmann '62, assistant dean of the Faculty for financial affairs, said yesterday.

Although Dean Rosovsky is trying this year to balance the budget and reverse a seven-year deficit trend, Kaufmann said Rosovsky decided on the increase because of hikes in tuition, room and board and the cost of living.

Rosovsky said last night he is "trying to maintain the present scholarship levels," and added, "as costs rise, we will try to make that up to students--we will try not to affect any student adversely."

Rosovsky announced in January that tuition, room and board costs will rise by $500 to $6430 next year.

Kaufmann said the Faculty intends not to lower any student's allocation without "a change in outside factors," but William J. Raduchel, director of freshmen scholarships, said yesterday new Federal guidelines for determining financial need may force both increases and decreases in aid.

"But the changes will be in the amount of money awarded and who gets that money, not in the percentage of the class receiving aid," Raduchel said.

Rosovsky said he would not be surprised if the number of women on scholarship increases in the coming year, explaining that the percentage of women has been rising as the female applicant pool has grown.

Of the $7.25 million allotted this year for scholarships, about $2.7 million was in unrestricted funds, which the College may use for any purpose, while the remainder came from University and Federal funds restricted to scholarship use, Kaufmann said.

He said there will probably be an additional $500,000 in unrestricted funds next year, with the remaining increase coming from the restricted University endowment.