BOSTON--Former Massachusetts Attorney General Francis X. Bellotti formally announced his candidacy for governor on the Democratic ticket yesterday, labelling himself as an "outsider" who could reform a troubled state government.

Before a crowd of approximately 300 supporters at the World Trade Center, Bellotti said that because he has no direct ties to the administration of Gov. Michael S. Dukakis, he would be able to make cuts in government spending necessary to restore the state to fiscal health.

"I have spent my political career threatening the status quo and running as an outsider," Bellotti said. "But when I have been a thorn in the side of Republicans and prominent Democrats alike it has been for a very goodreason. I do not believe that there should be anysacred cows or that anything is too sacrosanct forscrunity when it comes to the public trust."

In his call for across-the-board cuts to helpbalance the state budget, Bellotti distancedhimself from the current Democratic administrationand one of his chief rivals for the gubernatorialnomination, Lt. Gov. Evelyn Murphy. Murphy, who isslated to announce her candidacy on Tuesday,supports tax increases to maintain current stateprograms.

"Government does not exist to pay statelobbyists, technocrats and consultants who lurk inevery nook and cranny of our state agencies...Wemust curtail government spending, but we do nothave to make people suffer," Bellotti said.

"There is not a single agency or authority thatcannot be trimmed," he said.

The former attorney general claimed that hewould provide the "strong, personal leadership"necessary to lead the people in restoration of thestate to its former level of excellence.

"We must take back our state. Take it back fromtechnocrats and team players. Take it back fromspecial interests. Take it back from quick-fixmanagers whose only skill is to spend more of ourhard-earned money," Bellotti said.

He also mentioned improved secondary education,affirmation of abortion rights and swiftpunishment for drug dealers as planks in hiscampaign.

Bellotti, 66, served 12 years as the stateattorney general before deciding not to seekre-election in 1986. The current campaign is hissecond bid for the governor's seat. In 1964, hedefeated incumbent Gov. Endicott Peabody for theDemocratic nomination, but lost in the generalelection to Republican John Volpe.

In addition to Murphy, Bellotti may face othercompetition for the party nomination. State Rep.John Flood (D-Canton), has already declared hiscandidacy, and Boston Mayor Raymond Flynn, whotook himself out of the race last year, saidearlier this week that he will run if the statedoes not solve its fiscal problems within 60 days.

Boston University President John Silber is alsoexpected to launch a bid for the nomination thismonth, despite a lack of experience in electiveoffice.

But at least one roadblock to the nominationwas lifted this week, with the announcement byU.S. Rep. Joseph P. Kennedy II (D-Mass.) that hewould not seek the governorship. Kennedy, whomrecent polls have shown topping other Democraticcandidates statewide, said in a letter to hissupporters Tuesday that a bid for governor wouldinterfere with his obligations to his family.

Bellotti supporters who attended the campaignkickoff yesterday said his experience in stategovernment and commitment to reform are among hisstrongest attractions. Mitchell M. Krigest, aBellotti Volunteer, said that Bellotti's greateststrength was in "managing the resources he has toget the job done."

Another Bellotti volunteer, Michael A. Fraini,said he liked Bellotti's reform-oriented message."His clear message of reform in the Democraticparty offers renewed hope for the state and theparty itself," Fraini said