A panel of cabinet members from previous Democratic and Republican administrations called for large spending cuts and tax increases to reduce huge projected federal budget deficits in 1985 and later years.
The former officials told a news conference the federal budget deficit would total at least $250 billion in the 1985 fiscal year. They said $175 billion must be cut from scheduled spending increases for the '85 budget if the economy is to resume sustained growth. They suggested cutting $60 billion in projected social spending and $25 billion in projected defense outlays.
Meanwhile, President Reagan conceded that the balanced 1984 budget he promised as a candidate is now just a ''personal dream.''