The Gillard government's mining tax deal will not likely lead to an increase in debt issuance, according to analysts. This is because earnings lost under the compromise can be more than matched by savings in other areas.

Expectations were rising that a government backdown on the levy would substantially change the outlook for its revenue in the next years, delaying an envisioned return to a budget surplus in fiscal year starting July 1, 2012.

The new agreement on the new minerals resources rent tax represents a $1.5 billion reduction to the originally planned $12bn in revenue over the forward estimates, a cut economists think will not hinder the government's road to a surplus.

On a final deal with miners, Prime Minister Julia Gillard opted instead for a narrower rent tax on minerals, discarding plans for a super-profits tax on resources.

"There shouldn't be any material impact on debt issuance and certainly not in the near term," NAB economist Dave DeGaris said.

Bond prices were not largely influenced by the tax revisions.

Fixed-income markets had been wishing for a hint of more issuance as sovereign debt from Australia is in high demand but short supply because emerging regulatory rules will oblige banks to hold more AAA-rated assets on their balance sheet.

At its annual budget in May, the government predicted a $40.8bn budget deficit for fiscal 2011. Net debt is foreseen to reach 6.1 per cent of gross domestic product in 2011-12.

According to Treasury, net debt in the larger advanced economies as a proportion of GDP is inclined to extend to an average of 82.4 per cent in 2011.

However, the road to surplus could yet be obstructed. Barclays Capital strategist Gavin Stacey said a lot will be influenced and determined by how much cash the new tax generated.