UK economic growth has been lifted to 6.5% this year and 6% in 2022, said Finance Minister Rishi Sunak.
The revision compares with previous forecasts by the Office for Budgetary Responsibility of 4% for 2021.
The long term hit to the economy of the Covid19 pandemic was revised down to 2% of GDP from 3%, Sunak told parliament during his Budget speech.
Underlying debt was forecast to be 85.2% of GDP this year, Sunak said. It will rise to 85.4% of GDP in 2023 before peaking at 85.7% in 2024 before falling in the final three years of the forecast to 83.3% from 85.1%.
He added that a levy on developers with profits of more than £25m, worth 4%, would help fund a £5bn pot to remove unsafe cladding on buildings in response to the Grenfell tower fire that killed 72 people.