A new sugar levy on the soft drinks industry will be introduced, the Chancellor said.
It will be introduced in two years time to ensure companies reduce the sugar content of drinks and promote low sugar brands.
He said it was a "perfectly reasonable step" to protect children's health.
"Money from this new [sugar] levy will be used to double the funding we dedicate to sport in every primary school," Mr Osborne said.
The Chancellor has announced there will be a new sugar tax.
It'll be levied on soft drinks in the next two years - so by 2018.
Fuel duty will be frozen for the sixth year in a row, Mr Osborne said.
He said it would result in a saving of £75 a year for the average driver.
Beer, cider, whisky and other spirits duty will also be frozen but others will rise by inflation.
Flood defences will be boosted with £700 million of funding, the Chancellor said.
Tom Bradby's thoughts on George Osborne's budget so far:
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Mr Osborne confirmed he has failed to meet the rule of debt falling as a proportion of GDP this year.
He said the deficit would by 1.9% in 2017/18 and 1% in 2018/19.
The Chancellor said there would be a £10.4 billion surplus by 2019/20 and £11bn the year after.
Growth forecasts have been downgraded, the Chancellor said.
It was 2.4% for 2016, but has now been revised down to 2% by the OBR, George Osborne said.
It is predicted to be 2.2% in 2017 rather than 2.4% and 2.1% in each of the three years after that.
Mr Osborne said Britain was expected to "grow faster than any other advanced economy in the world".
Chancellor George Osborne said Britain is well-placed to cope with global "headwinds" as long as we "act now so we don't pay later".
He said the Office for Budget Responsibility has revised down growth in the world economy and in world trade.
Deputy Political Editor Chris Shop says George Osborne's gloomy global economic outlook is also a warning against a vote to leave the EU.