Delhi Chief Minister Arvind Kejriwal on Friday said freebies were good for the economy if no extra tax were to be imposed and it did not lead to budget deficits.

Kejriwal, whose government has been criticised by the BJP for giving "freebies", also said that freebies make more money available to the poor.

"Freebies, in limited dose, are good for economy. It makes more money available to poor, hence boosts demand. However, it should be done in such limits so that no extra taxes have to be imposed and it does not lead to budget deficits," he tweeted.

Delhi is going to the polls on February 8 and the Aam Aadmi Party (AAP) government has announced that it will continue its freebies on electricity and water, if re-elected.