She said that because of the fiscal reforms passed by Congress the country now has money to pay its debts and to build up its economy.

She also thanked internal revenue employees who rose up to the challenge of helping a worsening economy by turning in the biggest tax collection ever.

Arroyo steered clear of divisive political scandals in her annual address to the nation, saying “I am not here to talk about politics, I am here to talk about what people want."

The country is “focused on what the people want, the plan to put us on the path of prosperity," she said.

“Surely there must be a better way to do politics so that those who lose elections do not make the country pay for their frustrated ambition," Arroyo said in a jab at the opposition.

“There must be a better way so that those who win the nation’s mandate can work without delay and whimsical obstruction."

Arroyo also condemned the unsolved killings of hundreds of people, mostly left-wing activists, but most of her speech was focused on building new roads and airports and establishing economic “super-regions” to spur development.

She said it was time to end the dominance of imperial Manila and give more opportunities to the provinces and the people.

Under the mega-grouping, North Luzon will be the agri-business quadrangle, Metro Luzon will be the urban beltway, Central Philippines will focus on tourism, and Mindanao will be the agri-investment capital.

Also under the grouping, North Luzon would cover Regions 1, 2 and Cordillera Administrative Region plus Aurora and Nueva Ecija; Metro Luzon would cover Regions 3 (except Aurora and Nueva Ecija), 4-A, and National Capital Region or Metro Manila; Central Philippines would cover Regions 4-B, 5, 6, 7 and 8; and Mindanao would Regions 9, 10, 11, 12, 13 and the Autonomous Region in Muslim Mindanao.

For Central Philippine, the region would enjoy priority in tourism investments, Arroyo said.

She said these provinces attract more than half of the foreign tourists in the Philippines. She mentioned the world-class Cebu International Convention Center being built in Cebu in time for international summits in December, a landing system for Boracay, good roads in Panay, and alternative fuel projects in other areas.

She promised a central nautical highway to connect Cebu, Masbate, and Bicol.

She acknowledged the Filipino athletes who dominated the recently-concluded 23rd Southeast Asian Games and people’s champ Manny Pacquiao for bringing pride to the Philippines in the field of boxing.

Arroyo also recognized Precious Lara Quigaman, who ended the six-year beauty title drought by winning the Miss International 2005 title.

Filipinos even conquered the highest mountain peak in the world, with Leo Oracion and Erwin Emata reaching Mt. Everest, she added.

Arroyo also called on her political opponents to give up “old fights” and join her in the battle for the survival of the nation.

“For those who want to pick up old fights, we’re game. But what a waste of time. Why not join hands instead?" Arroyo said at the end of her State of the Nation Address Monday.