MANILA, June 28 (Xinhuanet) -- The Philippines needs crucial reforms to control the budget deficit and the debt burden and the reforming of the power and financial sectors to see strong enough growth to make any headway against poverty rates, the Philippine central bank governor said Monday.

    Philippine President Gloria Macapagal-Arroyo's full six-year term is "a window of opportunity" to address these key concerns, central bank governor Rafael Buenaventura told reporters.

    "We can't go on with business-as-usual," Buenaventura said.

    "With a new mandate, most business people are hoping we can do better," he said, adding that it is important to show local and foreign investors that "there is light at the end of the tunnel."

    However, he stressed that the economy had been "performing above expectations" and expressed confidence that inflation this year would remain within the government's five percent target.

    Buenaventura said the country was not facing a debt crunch as most of its debt was long-term but he remarked that with debt service charges, there was very little money left over for government expenditures.

    At the same time, he said the Philippines was far behind its neighbors.

    Controlling deficit and debt levels while reforming the power and the financial sectors would free up funds for infrastructure and encourage more investment needed to spur growth, he said.

    Buenaventura said top government planners were working out the economic agenda, which Arroyo will present in her annual state of the nation address to Congress on July 26.

    The Philippines incurred a budget deficit of 77.4 billion pesos(1.37 billion US dollars) in the first five months of 2004 and itsforeign debt stood at 56.7 billion dollars as of end-March, according to government statistics.

    An International Monetary Fund mission is in Manila because "they want to know what is the economic agenda for the next six years. What will be emphasized, what will be de-emphasized."

    On late Sunday, Arroyo unveiled the 10-point agenda of her administration for the next six years.

    She said the agenda will cover the administration's plan to uplift the economy and establish peace and order.

    The agenda include: creation of six to 10 million jobs; education for all; budget balance; decentralization of development;power and water supply throughout the country; decongestion of Metro Manila; development of Clark and Subic in the northern Philippines as logistics center in the region; automated elections;peace pacts with rebel groups; and "closure of wounds" from PeoplePower Movements.

    Arroyo was formally proclaimed the presidential winner of the May 10 elections by Congress early Thursday and her inauguration is scheduled on June 30. Enditem