What was going on when I was born?

The West German Cabinet today approved a rough outline for the 1982 budget that foresees a possible drop in military spending after inflation is accounted for. Chancellor Helmut Schmidt attributed the decline to the impact of high interest rates in the United States. The Chancellor, announcing the budget figures at a news conference after an all-day Cabinet session, said the Defense Ministry budget would increase by 4.2 percent, roughly equal to the overall budget rise. If 5 to 6 percent inflation is subtracted, the real change in military spending could be a cut by as much as 1.8 percent.

BRIDGE By JENNIFER DUNNING THIS is the weekend to catch up on modern dance, and in the process get a bit of sun and air. A wide variety of modern-dance styles - and even a little traditional dance and ballet - will be offered in settings that are almost as varied, for one of the charms of modern dance is its adaptability to very different environments. Erick Hawkins will make a rare appearance in the New York area - at the Pepsico Summerfare '81 arts festival in the Center for the Arts at the State University of New York, at Purchase. There's no one quite like this modern-dance master, and the Purchase programs offer an opportunity to sample his distinctive style of flowing movement in handsomely designed and thought-provoking dances, the product of 44 years of exploring the idiom of American modern dance.

Stagehands have been busy at Central Park's Delacorte Theater, clearing the deck from ''The Tempest'' and setting up for ''Henry IV, Part I,'' the latest serving of free Shakespeare in the park, which begins previews tonight at 8 P.M. and runs through Aug. 30. The production is directed by Des McAnuff and features Stephen Markle, Kenneth McMillan, Mandy Patinkin and John Vickery. For the first two weeks in August, there will be performances nightly except Wednesday; in the last two weeks there will performances nightly except Monday. Tickets are distributed on a first-come basis on the day of the performance, starting at 6:15 P.M. The Delacorte is near the park entrance at Central Park West and 81st Street. The box office number is 535-5630.

The Senate today took its first action on proposed legislation, already moving through the House, to apply domestic borrowing ceilings to foreign investors when they are seeking control of American companies. The Senate securities subcommittee unanimously cleared a bill that would apply domestic margin requirements to the purchasers of more than 5 percent of an American company's stock. This bill and the nearly identical House legislation will be considered by full committees in September and move to the House and Senate floors later in the fall, Congressional aides reported.

Business leaders yesterday welcomed the passage of President Reagan's tax package with enthusiasm and excitement, describing it as essentially a ''revitalization'' of American capitalism. But their excitement was tempered slightly by a concern for the program's inflationary potential. Executives and economists noted that the fundamental redirection of the economy implied in the recovery program could easily be undermined if Government spending was not brought under control. In discussing the President's tax cut program, most executives cited the importance it placed on encouraging individual initiative. However, they disagreed widely over which of the legislation's farreaching provisions would have the deepest impact on the nation's economy.

After a two-year slump in attendance caused by the soaring cost of gasoline and travel, Americans are flocking back to their national parks this summer in record numbers. But for many of the parks, the sudden crush of visitors comes at a time when the system can least afford it: budgetary pressures have forced parks like Yellowstone to reduce staff, and aging road, water and sewer systems are already stretched to capacity. ''We are all pushing extra hard here just to survive,'' said John Townsley, the superintendent at Yellowstone, the nation's first and largest national park. ''The park is under extraordinary pressure this summer, both from within and without.'' While attendance at Yellowstone is running 30 percent ahead of last year at this time, there are long lines at park restaurants, the public telephone system that connects Yellowstone to the outside world frequently does not work, and rangers say they are untangling about four automobile accidents a day on the crowded roads winding through the park.

''I don't know who's happier about yesterday's events, me or Prince Charles.'' - President Reagan. (A8:5.)

Men, but not women, are much more likely to die within several years after the death of a spouse than are people who are still married, according to a study by Johns Hopkins University researchers. But remarriage appears to increase the widowed man's chances of living longer, the study says. A husband's death has almost no effect on the mortality rate of women, according to the 12-year survey of more than 4,000 widowed persons, aged 18 and up. Although it has long been believed that the death of a spouse leads to psychological distress that might contribute to earlier death and to illness, this study was unusual in that it dramatically pointed up for the first time, according to the researchers, that the impact appears to be more devastating to men.

Savings institutions and commercial banks have long complained about restrictions that they maintained hindered them in their competition with high-yielding money market funds. As of tomorrow, some of those restraints will be lifted. Interest rate ceilings on time deposits are beginning to crumble, and as mandated by Washington, they will be eliminated on a staggered schedule, with some changes made each Aug. 1 through 1985. The last to go, on Aug. 1, 1985, will be the current passbook savings rate of 5 1/4 percent for commercial banks and 5 1/2 percent for thrift institutions.

Strains emerge in Nigeria's 21-month-old civilian regime A2 Gambia radio reports President is ousted while visiting Britain A2 Israel, startled by U.S. anger at raid, call truce good-will act A3 Haig says Soviet arms shipments to Cuba have risen sharply A3 Iranians demonstrate at French Embassy A3 India defends decision to buy foreign wheat A4 Around the World A5 Government/Politics Exhumation asked in case related to Hugel and C.I.A. A10 Casey says he omitted 3 stock holdings in report A11 Carey signs bill to aid people caring for parents at home B3 General Around the Nation A6 Five believed dead in blast at Utah explosives plant A6 Pennsylvania panel told of health insurance falsification A6 Fire Island property owners fight U.S. over condemnations B2 Summations heard in trial of seven on heroin-ring charges B3 "Rotten Apple Awards" made in midtown "litter disaster area" B7 Industry/Labor Medical group in Queens provid- ing services despite strike B16 Style The Evening Hours B5 Gres, Mori and Spook in Paris finale B5 A party given in the spirit of stylish young women B5 Obituaries James F. O'Neil, ex-publisher of American Legion Magazine B6 Sheldon Pollack, helped create Gateway Recreation Area B6 Weekend Weekender Guide C1 Tours of biblical garden at St. John the Divine C12 Culinary Institute, dining adventure at Hyde Park, N.Y. C17 First music and dance festival at Bear Mountain C3 Modern dance on the beach and under the bridge C1 Kazuo Ohno, Japanese avantgardist, dances at La Mama C22 Guggenheim party celebrates Dubuffet's 80th birthday C1 Art People C20 Theater: Broadway C2 "Bodybags," about Vietnam veterans, at Intar C11 Screen: Caine and Stallone in John Huston's "Victory" C6 At the Movies C6 Carrie Fisher and Chevy Chase in "Under the Rainbow" C14 Music: Glass's Sanskrit "Satyagraha" in American premiere C20 Philharmonic plays in Central Park, with fireworks show C12 Sharon McNight sings country-western assortment C12 "Rake's Progress" sung at Santa Fe festival C15 The Pop Life C22 Peggy Lee and Tony Bennett sing in Holmdel, N.J. C22 The two sides of Carla Bley C22 Auctions C19 Books: Publishing C20 "False Witness," novel by Dorothy Uhnak, reviewed C21 Restaurants C16 TV Weekend C23 Robert E. Mullholland named president of NBC C24 Sports National Basketball Association eliminates bonus free throws A14 Phil Hancock's 68 leads Canadian Open by a stroke A14 12 named for Whitney Handicap Saturday at Saratoga A14 Villanova coaching job poses new challenge for Charlie Jenkins A15 Baseball negotiations said to be on verge of breakthrough A15 Abdul-Jabbar reportedly seeks trade to Knicks or Nets A15 Todd reaches agreement with Jets on a new contract A15 Red Smith on a dwindling breed of baseball fan A17 Yankees tired of strike but support Miller A17 Simms of Giants sees the wisdom of Perkins's ways A18 Arias beats James, advancing to tennis quarterfinals A18 Features/Notes Woman in the News: Alair Townsend, new city Budget Director B1 Notes on People B16 News Analysis Judith Miller examines Senate inquiry on C.I.A director A11 John M. Crewdson on new Reagan immigration proposals A12 Editorials/Letters/Op-Ed Editorials A22 Helsinki rights, Soviet wrongs Advice on American rights Wanna buy a comet picture? Topics: barely visible Letters A22 Tom Wicker: Ronald Reagan, a man of reason A23 Flora Lewis: sharing the royal fun A23 Peter Shapiro: block grants are a trap A23 Sidney Zion: Mideast genesis, rewritten A23 Wright Morris: behind a tractor wheel A23

A jury acquitted a 53-year-old Newburgh man today of charges that he shot two hunters to death in the wooded hills of Orange County in 1952. The case had been reopened after a sister broke what she said was a 28-year vow of silence and testified against him. The jury, which began six and a half hours of deliberation in Orange County Court at 5 P.M. yesterday, found John Youmans not guilty on all four charges, including two of first-degree murder -a charge that no longer applies to the murder of civilians. The announcement of the verdict at 4:30 P.M. by the jury's foreman, Catherine Berry, produced an emotional outburst among Mr. Youmans's supporters in the courtroom, principally members of his family. Three of his children, who had been present for most of the 14 days of trial, wept. His wife, Lucille, ran from the courtroom in tears.

The battle for Conoco Inc. is regarded by Wall Street professionals as a race down to the wire. But Du Pont emerged yesterday as the leading contender to win control of the oil company, based on the number of shares that have already been offered to the chemical group. Although investors have until Tuesday to switch their shares from Du Pont to other bidders, an executive of the First Boston Corporation, financial adviser to Du Pont, pointed out that the company now controlled almost two-thirds of Conoco. At the same time, the 17 million shares that Joseph E. Seagram & Sons said it held more than a week ago can be switched elsewhere before the deadline tonight, while the 2 million that the Mobil Corporation said it held can be withdrawn and sent to either of the other two bidders until Aug.6.