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Strong GNP, low inflation seen in '85 Reagan budget

The Reagan administration has unveiled the economic assumptions behind the fiscal 1985 budget it will publish in January, showing the administration generally expecting "strong growth with declining inflation over the next six years."

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The inflation-adjusted GNP is expected to rise 4.5 percent between the fourth quarter of 1983 and the fourth quarter of 1984. Inflation, as measured by the GNP deflator, is projected to be 5 percent over the same period. The average annual unemploymet rate for '84 is expected to be 7.8 percent.

Meanwhile, 16 Democratic congressmen whose support was crucial last month to President Reagan's request for an increase in the debt limit warned Wednesday that unless Mr. Reagan participates in a bipartisan effort to reduce budget deficits, they may withhold their support on a similar request next spring. "Quite frankly, Democrats in the House are sick and tired of having the President point the finger at us for the deficit disaster that is of his making, " Gillis W. Long of Louisiana said.

Treasury Secretary Donald T. Regan indicated the White House may be more receptive to congressional efforts to control the deficit after receiving the 1985 projections.

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