President Gloria Macapagal Arroyo, more politically secure than a year ago, trumpeted her government's economic achievements and set out her plan of action for the Philippines in her annual speech to the nation on Monday.
Some analysts viewed her promises of more spending to improve infrastructure, education, healthcare and the business climate as a message of hope to the developing Southeast Asian country. But many saw early campaigning for congressional and local elections next May and wondered where Arroyo would get the money.
"There's nothing apart from stating the obvious," said Song Seng Wun, regional economist at CIMB-GK Research in Singapore. "I do not expect any market impact from the speech."
Police and soldiers were out in force at the Congress complex and in the streets of Manila, as about 7,000 protesters called on Arroyo to step down and smashed an effigy of her with a Hitler moustache under steady rain fuelled by typhoon Kaemi.
"I am not here to talk about politics. I am here to talk about what the people want," Arroyo said in a speech long on plans but short on financial specifics.
"Because of our reforms in the economy, we now have the funds to address social inequity and economic disparity."
Despite a tough year of allegations, thwarted plots and open warfare with her political enemies, the president's reforms have begun to bolster government revenues and cut the budget deficit.
But economists, questioning the sustainability of the better revenues, note her government uses about a third of its budget to pay interest on debt of $76 billion and that spending has fallen short of the needs of a fast-growing population.
Interrupted dozens of times by thunderous applause from her supporters, Arroyo announced the creation of four "mega regions" to link affinities in natural resources and tourism, as well as a technology corridor running from north to south.
She vowed to make food more affordable, reduce the cost of electricity, slash red tape at state agencies to cut business costs and modernise the transportation of goods and people. Arroyo also asked Congress for a supplemental budget for this year after lawmakers failed to pass the government's 2006 spending plan, likely forcing a roll-over from last year.