MANILA, Philippines -- (UPDATE) The global food and oil crisis notwithstanding, President Gloria Macapagal-Arroyo has assured Filipinos that the nation would survive, as she spelled out her administration's programs and how revenues from the expanded value added tax would help tide the country over.

This year's State of the Nation's Address was Arroyo's eighth since she assumed post in 2001.

Arroyo rallied the public, Congress, and the judiciary to work with her for the people, stressing that she will not let the political ambitions of some to get in the way of her desire for the nation.

"As your President, I care too much about this nation…I will let no one, and no one's political plans, get in the way of the well-being of the people. I will let no one hinder our people's progress and prosperity. I will let no one threaten our nation's survival. This is my commitment," she said in her speech.

"Our country and our people have never failed to be there for us. Let us be there for them. Now," she added.

Arroyo said global challenges confronted the country with the surge in oil and food prices. But she added that "because tough choices were made, the global crisis did not catch us helpless and unprepared."

She laid down three strategies to solve "many complex challenges."

"First, we must have a targeted strategy and set of precise prescriptions to ease the price challenge we are facing; second, food self-sufficiency, less energy dependence, greater self-reliance in our attitude as a people and in our posturing as a nation; and third, short-term relief cannot be at the expense of long-term efforts. These reforms will benefit not just the next generation of Filipinos, but the next President as well," she said.

She said that the 12-percent VAT, which many sectors want scrapped, has a very crucial role to play in meeting these strategies.

"Itong programa ay sagot sa mga problemang namana natin [This program is the answer to the problems we have inherited]," she said.

"Una, mababawasan ang ating mga utang [First, our debts will be reduced] and shore up our fiscal independence; pangalawa, higit na pamumuhunan para sa imprastraktura
at taong bayan [second, more investments for infrastructure and our people]; panghuli, sapat na pondo sa mga programang pang-masa [and last, enough funds for pro-poor programs],"she said.

"Take VAT away and you and will abdicate our responsibility as leaders and pull the rug from under our present and future progress, which may be compromised by the global crisis," she said.

She said her administration has persevered and has been "without flip-flops" despite the "much criticized but necessary policies" on oil and VAT and oil deregulation.

As she has in the past, Arroyo said she would continue to bear her dipping popularity for making “tough choices” she said had “saved the nation.”

"Because tough choices were made, the global crisis did not catch us helpless and unprepared. Through foresight, grit and political will, we built a shield around our country that has slowed down and somewhat softened the worst effects of the global crisis. We have money to care for our people, to pay for food when there are shortages; for fuel despite price spikes," she said.

"Neither we nor anyone else in the world expected this day to come so soon, but we prepared for it. For the guts not to flinch in the face of tough choices, I thank God. For the intelligence to recognize, I thank Congress. For footing the bill, I thank the taxpayers." Arroyo said.

As a result, she said, "on the one hand, ito ang nakasalba sa bayan [this is what saved the country], and on the other, more unpopularity for myself in the opinion polls."

Even as she hailed the agreement between the government and the Moro Islamic Liberation Front (MILF) on ancestral domain, Arroyo asked Congress to work on legislative reforms "that will lead to long and lasting peace during our term."

While acknowledging there might be kinks in the negotiations, but added that it was better that the panels were talking than fighting. "Better than fight, if nothing sovereign value is anyway lost. Dialogue has achieved more than confrontation in many parts of the world," she said.

Arroyo has endorsed the postponement of the election in the Autonomous Region in Muslim Mindanao (ARMM) scheduled August 11 to pave the way for the progress of the talks with the MILF.

One of the agreements between the government and the MILF was for the holding of a plebiscite that would expand the ARMM to include some 700 villages in five provinces.

The government and the MILF are scheduled to sign the final draft of the memorandum of agreement on ancestral domain next week.

Arroyo also again urged Congress to speed up the passage of several measures, including one extending the Comprehensive Agrarian Reform Program (CARP).

She asked lawmakers to work on the extension of CARP for another five years to allow for the distribution of lands to farmers.

Arroyo also asked Congress to pass bills allowing the Social Security System to grant housing loans beyond the 10 percent limit, allowing use of farmlands as loan collateral, renewable energy, anti-corruption, and the consumers’ bill of rights.