President Reagan's $1.09 trillion budget, submitted to Congress yesterday, follows the guidelines set by the deficit-reduction agreement reached with Congress late last year.

In his budget message, Reagan notes that "this budget does not fully reflect my priorities, nor, presumably, those of any member of Congress. But the goal of deficit reduction through spending reduction must be paramount. Abandoning the deficit-reduction compromise would threaten our economic progress and burden future generations."

Here is a look at how the budget, if passed as proposed, would affect selected agencies.

Defense

Secretary Frank C. Carlucci carved $33 billion from the fiscal 1989 budget that the Pentagon wanted. The proposed $299.5 billion budget has resulted in few major cutbacks in military personnel or programs but means some programs won't grow as rapidly as the Pentagon would like.

The plan calls for reducing the current military strength of 2,174,000 by 36,000 troops. The Army will lose 9,000 troops, the Marines will cut 2,000 and the Air Force will drop by about 31,000. The Navy will pick up 6,000 new sailors, but Navy officials say that is a smaller increase than they had requested to operate ships that will be entering the fleet.

The Army will lose two battalions it planned to activate as part of the new light infantry division in Alaska and will retire 450 old utility helicopters. The Navy will retire 16 older frigates and will miss its goal of completing the 600-ship Navy in 1989. It will have 580.

Eighteen existing weapons programs will be eliminated -- most criticized as too expensive or problem-plagued. The budget proposes continued production for other programs including the Army's M1 tank and controversial Bradley Fighting Vehicle and the Navy's new SSN21 fast attack submarine. Education

The president's proposal includes increases of $1.5 billion in education spending, an 8 percent increase, to $20.3 billion, with priority given to disadvantaged children and aid for needy college students. The budget includes a proposal to encourage families to buy savings bonds to save for college tuition.

The budget document is the first of the Reagan administration to contain a significant increase for education; the fiscal 1988 budget requested education spending cuts of about $5 billion.

The budget pushes Secretary William J. Bennett's themes of accountability and parental choice in education. It requests an increase of $43 million, to $115 million, for magnet schools, which offer special programs.

Chapter 1, the federal program for disadvantaged children, would receive an increase of $238 million, to $4.6 billion, to fund remedial education programs for 5.6 million children. Education officials said about 5.5 million children now receive such services. The proposal would target increases to districts with larger numbers of children from low-income families.

The Pell grant program, which goes to the neediest students, would receive an increase of about $750 million in budget authority for fiscal 1989. The maximum grant would be increased $100, to $2,300, and the funds would allow grants to 247,000 additional students.

The tuition savings bond proposal would exempt interest earned on U.S. Savings Bonds from federal income tax if the bond was used for college education. Officials estimated the cost of the program in lost revenue to be $10 million in 1989.

Health and Science

The Department of Health and Human Services accounts for more than a third of the federal budget. For fiscal 1989, the proposed outlays are $396.8 billion -- about $22 billion over 1988.

Over nine-tenths is for direct benefits for the poor, the aged and the disabled: Social Security benefits ($234.5 billion); Medicare ($81.9 billion), Medicaid ($32.7 billion); Supplemental Security Income for low-income aged, blind and disabled people ($12.5 billion); Aid to Families with Dependent Children ($10.9 billion); blacklung benefits for disabled coal miners ($900 million) and fuel subsidies for low-income people ($1.2 billion, a $300 million cut from 1988).

On AIDS, "the highest public health concern of the administration," the president requested $1.3 billion in new appropriations for Public Health Service programs to combat the disease. Last year he asked $791 million, which Congress raised to $951 million.

The president also sought an increase for the nation's leading biomedical research center, the National Institutes of Health, from $6.2 billion in fiscal 1988 to $6.535 billion in 1989. (This does not include another $588 million NIH would receive from the $1.3 billion in AIDS funding.)

On Medicare, the president's budget hews closely to the administration's deficit-reduction agreement with Congress last year. But the department said those proposals fall $1.2 billion short of achieving the savings targets, a figure disputed by congressional leaders. HHS, however, proposes $1.3 billion in added cuts for fiscal 1989, including $920 million in the "indirect" subsidy paid to hospitals by Medicare to help defray the costs of interns and residents.

About $400 million in the Energy Department's budget will go for the giant atom smasher called the Superconducting Supercollider, a 52-mile circular machine that will probe the nature of matter.

The nonmilitary space program gets a big boost, with a request for $11.5 billion for the National Aeronautics and Space Administration, an increase of $2.5 billion over 1988 levels. This includes nearly $1 billion for the manned space station.

NASA Administrator James Fletcher said the increase is "essential" if the space agency is to keep its commitments to return the shuttle to regular flight -- seven missions are planned for fiscal 1989 -- and to move the space station into full-scale development.

The new budget, representing an increase in outlays of nearly 30 percent, calls for $4.4 billion for research and development, a $1.15 billion increase over 1988, and includes $100 million for a "Pathfinder" program to develop technology required for any future missions to the moon or Mars.

The space science funding includes $27 million to begin building a "Great Observatory." The only "new start," it is known as the Advanced X-Ray Facility and would be launched in 1995.

Transportation

The Transportation Department seeks $27 billion, which is $1.1 billion less than its 1988 request. The proposal would eliminate funding for Amtrak and mass transit operating subsidies for large and medium-sized cities.

At the Federal Aviation Administration, still recovering from the 1981 air traffic controllers' strike, the budget calls for a 13 percent increase, which would cover the hiring of 900 air traffic controllers and acquisition of modern equipment for air traffic control centers. The FAA said it also wants to hire 300 aviation inpectors and 50 security personnel.

Environment

For the Environmental Protection Agency, the president requested $4.8 billion, slashing last year's budget by $600 million, or 11 percent.

The biggest cut would come from state grants for construction of sewage-treatment plants, down from $2.3 billion in last year's budget to $1.5 billion requested yesterday. The request is expected to spark a clash with Congress, which authorized $2.4 billion for construction grants in the Clean Water Act of 1986.

Reagan vetoed the legislation -- it provides for $18 billion over an eight-year period -- as too costly in late 1986, but his veto was overridden. Still, yesterday's request is $900 million less than Congress authorized.

Justice

The budget requests $6.15 billion for the Department of Justice, an increase of 14 percent -- or $772 million -- over fiscal 1988.

Although the budget provides for more than $76 million in increased funding and 655 new positions for federal antidrug programs, it cuts $69.5 million in grants to state and local governments to promote drug-enforcement efforts.

Deputy Attorney General Arnold said money that will flow to state and local governments under the asset forfeiture program, in which assets are seized from drug traffickers and others convicted of crimes, "will more than make up for these grants as time goes on." States are expected to receive more than $112 million in fiscal 1989 through that program.

Staff writers Judith Havemann, Philip Hilts, Ruth Marcus, Molly Moore, Laura Parker, Spencer Rich, Kathy Sawyer, Barbara Vobejda and Michael Weisskopf contributed to this report.

OUTLAYS IN BILLIONS OF DOLLARS SHOWN BY FISCAL YEAR

.......1987...1988...1989...1990 ..1991...1992...1993...% Change,

................................ .......................'88-'89

Defense

.....$282.0.$285.4.$294.0..$306.2 .$320.2...$335.4.$351.3..+3.0%

International

..discretionary

.. ....12.8...15.8...15.6....17.0 ...17.1.....17.0...17.1.. 1.0

Domestic

..discretionary

......148.1..160.6..169.1...177.3 ..179.0....180.5..182.7...+5.3

Entitlements,

..other mandatory

..programs

......459.6..491.6..511.5...540.1 ..572.2....604.7...637.5..+4.0

Subtotal

......902.5..953.4..990.2.1,040.7 1,088.5..1,137.6.1,188.5..+3.9

Net interest

......138.6..147.9..151.6...156.1 ..158.8....151.0...141.5..+2.5

Asset sales

..........0... 9.3.. 10.0.... 8.0 .... .9...... 2.3... 1.0..+7.6

Undistributed

..offsetting

..receipts

...... 36.5.. 36.1.. 37.7... 40.6 .. 42.7..... 45.3.. 47.7..+4.3

TOTAL

....1,004.6/1,055.9/1,094.2/1,148.3/1,203.7/1,241.0/1,281.3/ +3.6

SOURCE: Office of Management and Budget

DISCRETIONARY PROGRAMS IN BILLIONS OF DOLLARS

....................................1987...1988...1989..% Change,

........................................................'88-'89

Space and science

Budget Authority...................$12.5..$10.7..$13.9...+29.3%

Outlays..............................9.2...10.9...13.1...+20.2

Transportation, public works

Budget Authority....................12.3...12.6...11.0... 12.7

Outlays.............................26.7...28.4...28.3..... -- *

Economic subsidies

and development

Budget Authority....................39.4...44.6...43.1.... 3.3

Outlays.............................38.6...41.4...43.1....+4.2

Education, social services

Budget Authority....................29.6...30.2...31.3....+3.7

Outlays.............................27.9...30.0...31.1....+3.6

Health research and services

Budget Authority....................22.7...23.9...24.7....+3.5

Outlays.............................20.9...22.8...24.2....+6.2

Law enforcement, other core functions of government

Budget Authority....................20.5...21.2...23.6...+11.3

Outlays.............................24.7...27.2...29.3....+7.5

TOTAL DOMESTIC DISCRETIONARY

Budget Authority...................136.9..143.2..147.6....+3.1

Outlays............................148.1..160.6..169.1....+5.3

Bipartisan Budget Agreement

Budget Authority..................... -- ....145.1..148.1....+2.1

Outlays.............................. -- ....160.3..169.2....+5.6

*$50 million or less.

SOURCE: Office of Management and Budget