TARLAC, Philippines  - Sen. Benigno "Noynoy" Aquino III, on course to win the Philippine presidential race, said on Tuesday he will work at cutting unnecessary spending in the national budget and increase perennially weak tax revenue.

Aquino, son of democracy icon Corazon "Cory" Aquino, also said he was not in favor of raising the rate of consumption tax, adding the government needs to raise more revenue from taxes already in place.

Raising revenue also entails going after smugglers and tax evaders, he said.

"We have to do away with the frivolous items of this government," Aquino told Reuters in an interview at a museum devoted to his parents inside the family estate in Tarlac province north of Manila.

"Before we start imposing new taxes, we should be collecting the taxes that are already there," he said regarding a proposal from Finance Secretary Margarito Teves to raise the consumption tax rate.

Financial markets were set for a boost on Tuesday after national elections delivered the result many investors hoped for -- a decisive and credible victory for presidential frontrunner Aquino.

Technical problems with a new automated system of voting and results tallying forced many to wait for hours to cast their ballots in Monday's polls -- including Aquino himself who faced a 4-hour delay. But fears of a wholesale failure of the election due to technical problems or violence failed to materialize.

An unofficial tally with 57% of votes counted showed Aquino well in front with 40.6%, ahead of former President Joseph Estrada in second place with 25.7%, the Commission on Elections (Comelec) said.

That was in line with opinion polls which gave Aquino a commanding 20-point lead.

Comelec put turnout at 75% -- 10 points lower than forecast but still high enough to dispel concerns the polls to elect Gloria Macapagal Arroyo's successor would lack credibility.

 The broadly successful ballot -- despite technical problems, shootings and bombings in some remote areas and allegations of vote buying -- is a relief for domestic financial markets that feared a failed vote above all other outcomes.

That, along with a bounce in global markets on the rescue package for the Euro zone, was set to lower the risk premium priced into Philippine assets when local markets reopen on Tuesday, with attention turning to Aquino's policy agenda and in particular how he plans to get the fiscal deficit under control.

"If all goes smoothly and the president is proclaimed on time, I think the market will react positively," said Barclays Capital economist Prakriti Sofat in Singapore.

"However, market participants will be keen to hear the strategy of the next government to address fiscal concerns."