The diplomatic corps, through its dean, Papal Nuncio Archbishop Fernando Filoni, cited the coming elections as a "very important moment in highlighting democracy in this country."
During the traditional vin dhonneur, Mrs. Arroyo allayed fears that her administration would waste its revenue and improving economic indicators by using the money to gain advantage in the polls.
At the 16th anniversary celebration of the Philippine National Police (PNP) yesterday, the President also called on law enforcers to safeguard the elections.
"Lest anyone falsely declare that we will spend beyond our means before the upcoming elections. Ive something to say: No way. We have a budget in place and the discipline and political will to stick to it," she said.
Analysts have expressed concerns over the coming elections, particularly on how the government will handle the exercise without hurting the economic and political condition of the country.
Mrs. Arroyo also vowed there would be honest, peaceful and orderly elections, even as political violence appears to escalate as the polls approach.
"I can tell you today that we will not stand for one particular thing we will not stand for an election in May disrupted by violence or political intimidation," she said.
"We will do everything in our power to crack down on political violence leading up to this May election so that our citizens can vote free from fear, so that our candidates can campaign without the shadow of assassination, and so that our journalist comrades can cover the election, not their head, in pursuit of press freedom," Mrs. Arroyo said.
Filoni said that, during this year, the Filipino people will be called upon to renew the House of Representatives, part of the Senate and the local governments. He added that much is expected from a country that was one of the first to fight for democracy and justice in the Asian region.
"This noble nation has certainly the high hopes that its people will enjoy political progress and stability," Filoni said.
The European Union, through EU head of delegation Alistair MacDonald, said it was the governments responsibility to ensure that the elections are peaceful and correct, whether it uses the civilian administration, police or the military.
The United States and other nations have also been closely monitoring elections in the Philippines by sending observers to see how the balloting and counting are conducted.
Mrs. Arroyo told the international community that, with Congress approval of the 2007 budget, the government will have programmed spending mainly for infrastructure and social services.
She said the government will finally be able to invest in long-overdue infrastructure essential to spurring economic growth in the country as well as education, health care and other programs for the poor.
"This includes billions more for new roads, bridges, ports and physical infrastructure," Mrs. Arroyo said.
Stressing that the government has no funds for extra expenditures for the May polls other than those allowed by law, Mrs. Arroyo said the government would continue to pay down the countrys deficit and eventually achieve a balanced budget by 2008.
Meanwhile, the Commission on Elections (Comelec) again said poll automation can no longer be implemented due to the lack of "acceptability" of poll automation among candidates and voters.
Comelec Chairman Benjamin Abalos said that, besides time constraints, the poll body cannot automate elections, even in selected areas, because the new system has yet to gain the acceptance of the people: "The law speaks of six months training because acceptance is more important. Acceptability of the technology by our people."
Abalos said the people commonly distrust anything that is new, thus there is a need for the people to trust and accept poll automation before it can be implemented.
He also said some politicians expressed apprehensions that they may lose in the elections because the people do not know how to use the new voting machines.
"Some congressmen told me that they are very sure of victory but they might lose because voters might press the wrong buttons. So thats distrust," Abalos said.
Abalos added that the advisory council, which was mandated by law to select the machines for the pilot-testing of computerized elections, has yet to convene.
"The law on poll automation would take effect only on Feb. 12 and only then can the advisory council officially convene and select its members," Abalos said.
Abalos also stressed that the Comelec should not be faulted for the delay in the implementation of the poll automation because the Commission needs to await the recommendation of the advisory council as mandated under the law.
He also defended the Comelecs decision to allow the use of Internet voting for the overseas absentee voting (OAV) in Singapore.
Abalos said the Comelec is authorized under the law to use Internet voting and the Office of Solicitor General has exempted the poll body from undergoing the regular bidding process for such technology.
Meanwhile, Abalos said, the poll body will come out with the guidelines for the use of electronics technology in campaigning such as by using text and Internet campaigns.
"We were told that a text campaign would be very difficult to monitor, but we will come out with a resolution on how it can be used by candidates," he said. With Mayen Jaymalin