P Chidambaram, Congress leader and former Union minister, on Thursday said it would be fascinating to know why the finance ministry "embarrassed" Prime Minister Narendra Modi by bringing out information on GST compensation to states on a day when the latter chose to "admonish" the states.

The finance ministry said on Wednesday that the Centre has already released eight months of GST compensation due to states for the fiscal year ending March 2022, with an additional 78,704 crore pending due to an inadequate balance in the cess fund.

Chidambaram said on Twitter that on the same day that the Prime Minister urged states to lower the VAT rate on petrol and diesel, the finance ministry announced that the Centre owed the states 78,704 crores.

"The amount owed is actually more. If you add the amounts that the states claim are owed to them, the total amount may be bigger. Only the Controller of Government Accounts (CGA) can certify the correct amount," the Congress leader wrote.

"It will be interesting to know why the MoF embarrassed the PM on the day he chose to admonish the States!" the former finance minister added.

Modi held a Covid review meeting with chief ministers and senior officials a day ago, during which he also addressed higher fuel prices in many opposition-ruled states, blaming the governments for the "injustice" meted out to citizens.

He urged the governments there to reduce VAT in the "national interest" to benefit the common man.

Many states, such as Maharashtra, West Bengal, and Tamil Nadu, he said, were not complying with the Centre's call to reduce the Value Added Tax (VAT) on petrol and diesel after his government slashed excise duties on them in November last year, and he urged them to work in the spirit of cooperative federalism in this time of global crisis.