Poor management of space programs, projects, contracts and expenses made Russia's Federal Space Program inefficient despite the increase in its budget in the past three years, the parliament's Audit Chamber said in a statement.
The chamber's review found only 40 percent of the goals set by the Federal Space Program were achieved in 2010, 66.7 percent in 2011 and 73.3 percent last year, RIA Novosti reported Friday.
The chamber criticized the federal Roscosmos space agency for relegating control over major space projects, including the production and launches of Proton-M rockets, to individual state-run or private companies.
A Proton-M rocket carrying three Glonass GPS satellites exploded shortly after launch Tuesday from the Baikonur space center in Kazakhstan.
"Roscosmos is among the biggest and least disciplined [of government agencies] that blatantly ignore regulatory requirements and best practices in state procurement orders," the Audit Chamber said.
"Harsh decisions" must be taken because Russia's rocket and space industry "cannot continue to exist in its current form," Deputy Prime Minister Dmitry Rogozin, who oversees the defense and aerospace industry, said.