He also said the government was considering new taxes on single-use plastic and on the profits of tech giants like Facebook and Google.
The Treasury will today publish information about how the £1.5bn that has been set aside for Brexit planning will be spent.
The debt forecast is almost 1% lower than in November, Mr Hammond said.
And after the Chancellor compared Labour to gloomy cartoon character Eeyore and himself to the more optimistic Tigger, shadow communities secretary Andrew Gwynne joked that Mr Hammond was "talking Pooh".
However, he added there will be more pay for NHS staff if management and workers reach a deal on a pay agreement. But the structural deficit nearly unchanged in 2019-20.More news: Nine CRPF personnel killed in encounter with Maoists in Chhattisgarh
The world's sixth-biggest economy would grow a bit more slowly than previously thought in the following two years, by 1.4 and 1.5 per cent respectively in 2021 and 2022.
Instead, Hammond unveiled the latest economic forecasts from the Office for Budget Responsibility which show how the United Kingdom economy is performing. However, it left its prediction for United Kingdom growth in 2019 unchanged at 1.1 per cent.
Growth also looks set to be slightly higher than forecast a year ago - but public debt as a percentage of national income remains well above 80%.
In 2021, GDP is forecast to rise to 1.4%, down from the 1.5% expected in the November budget.
Chancellor Philip Hammond said borrowing was due to fall in every year of the forecast. Wages of the lowest paid are up by nearly 7%, he added.More news: Harding Loevner LP Has $103.91 Million Holdings in Microsoft Co. (MSFT)
It's expected that he will say borrowing is down - possibly by as much as £10bn - and that growth is up.
Growth is likely to climb to 1.5 percent this year, Hammond said in Parliament Tuesday, higher than the 1.4 percent forecast in November.
There will be no policy announcements or tax and spending measures - they will be held back to the autumn Budget - and no photocall outside 11 Downing Street with the chancellor's red box.
"Today's brief address will likely see the first full analysis of Brexit's impact on United Kingdom public finances, good news in terms of lower public borrowing and economic growth higher (but not necessarily an end to austerity), as well as announcement of a range of consultations on issues such as tax for small businesses, inheritance tax for individuals and a levy on "single use" plastics", said Accendo Markets analysts Mike van Dulken & Henry Croft.More news: Uber driver arrested after molestation attempt on Delhi woman