The budget for the department for the 2014-15 fiscal was fixed at Rs 7,238 crore but was revised to Rs 5,826 crore.
"...Therefore, the budget allocation for the department should be suitably enhanced," the Parliamentary Standing Committee on Science and Technology said.
With the cut in allocation also affecting Polar Satellite Launch Vehicle (PSLV) projects, the committee recommended utilisation of funds efficiently and in time to have minimal cuts at the revised estimate stage as some important PSLVs are scheduled during 2015-16.
"Technical hurdles coming in the way must also be overcome so as to ensure that the project is completed within the scheduled time frame as we are already way behind USA and China in this regard," it said.
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It also asserted that the proposed national committee envisaged earlier to evolve a policy framework for increased participation of private sector in Indian space programme should be set up without further delay.
Noting that pre-project activities for development of critical technologies such as crew escape system, environmental control and life support system are still being developed, the committee emphasised on expeditious and time- bound completion of such programmes.
Talking about China efforts to explore the potentiality of solar power at an altitude of 36,000 kms, the committee felt the Department of Space should also look into such path breaking initiatives to be a world leader in the space field.