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The administration Thursday projected a $152.3 billion budget deficit for fiscal 1988, up $9.9 billion from February due to savings and loan bailouts and delays in payments on foreign military sales credit loans. In a mid-session review, the administration also said that although the 1989 deficit should conform with the Gramm-Rudman-Hollings balanced-budget law, anticipated increases in such areas as drought relief and anti-drug programs will have to be offset by reductions elsewhere to avoid triggering automatic budget cuts. The Gramm-Rudman-Hollings law provides a $10 billion "cushion" between the target deficit of $136 billion and the point at which automatic spending cuts are mandated. The report, prepared by the Office of Management and Budget, noted "the economic outlook has improved substantially" since February, but also acknowledged that interest rates are higher than was forecast.