George Osborne said the improving economic outlook meant borrowing would be £111 billion this year - £9 billion less than predicted at the time of the Budget in March.
Overall the Office for Budget Responsibility is now forecasting that borrowing over the next five years would be £73 billion less than previously thought with a "small cash surplus" by 2018/2019.
A package of measures to tackle tax avoidance, evasion, fraud and error will raise more than £9 billion over next five years. Capital gains tax will be imposed on non residents who sell residential property in the UK.
The fuel duty rise for next year has been cancelled, Chancellor George Osborne has announced.
Petrol tax had been set to rise by 2p a litre.
Funding for Jobcentres to support 16 and 17-year-olds in finding apprenticeship or traineeship.
Requirement for job seekers aged 18 to 21 to start traineeship, work experience or community work after six months or lose their benefits.
The Chancellor has announced that financial resources will be provided to fund expansion of free school meals to all school children in reception, year one and year two.
George Osborne has announced new loans worth £1 billion to unblock housing developments including in Manchester and Leeds.
Labour claims working people are, on average, £1,600 a year worse off since the last election.
Speaking ahead of today's Autumn Statement, shadow chief secretary to the Treasury Chris Leslie claimed there has been no recovery at all, with prices rising faster than wages.
He said: "What we need from the Autumn Statement is a long-term plan to tackle the cost-of-living crisis and earn our way to higher living standards for all, not just a few at the top.
"We need action to get more homes built, boost apprenticeships and cut business rates for small firms.
"We should make work pay by expanding free childcare for working parents and introduce a compulsory jobs guarantee for young people and the long-term unemployed.
"And we need to freeze gas and electricity bills while we make long-term changes to the energy market to stop customers being ripped off."
Chancellor George Osborne is expected to cap increases to business rates in his Autumn Statement today and only a quarter of the public think the coalition understands the concerns of small business owners and entrepreneurs, according to the ITV News Index carried out by polling firm ComRes.
Only 26% of those questioned said the Government understood small business owners, while 66% thought the Coalition understood banks and big businesses.
Public sector net borrowing forecast to be 5.6% in 2014, then 4.4%, 2.7% and 1.2% in subsequent years, with a small surplus by 2018/19.