A senior Treasury official told Reuters earlier that the measures would fund additional grants to businesses forced to close due to coronavirus restrictions and extend an existing debt moratorium for small and medium-sized companies.

The extra borrowing will probably push this year's fiscal gap above 10% of gross domestic product (GDP), up from 9.5% in 2020 when the economy shrank by 8.9%, a government source told Reuters on condition of anonymity.

(Reporting by Angelo Amante and Gavin Jones; Editing by Crispian Balmer)