The Lower House approval Tuesday of the fiscal 2000 budget, a major hurdle in the ongoing 150-day regular Diet session, is expected to give Prime Minister Keizo Obuchi a freer hand in dissolving the chamber for a general election.

But the state of the economy -- believed to be a key factor in Obuchi's decision over when to call the election -- still appears mixed at best. While the Nikkei average on the Tokyo Stock Exchange continues to hover just below 20,000, the jobless rate remains pegged near its postwar high, and the October-December gross domestic product -- to be released soon -- is forecast to mark the second quarterly fall in a row.

The recent scandal involving Financial Reconstruction Minister Michio Ochi -- who was effectively sacked for appearing to suggest to bankers he was willing to relieve pressure from another governmental body's inspections -- may also affect the prime minister's decision as he searches for the best timing for an election, which must be held no later than in October.