The revenue system of Shivaji was based on that of Malik Amber of Ahmadnagar. Lands were measured by using the measuring rod called kathi. Lands were also classified into three categories – paddy fields, garden lands and hilly tracks. He reduced the powers of the existing deshmuks and kulkarnis. He appointed his own revenue officials called karkuns.

Chauth and sardeshmukhi were the taxes collected not in the Maratha kingdom but in the neighbouring territories of the Mughal empire or Deccan sultanates. Chauth was one fourth of the land revenue paid to the Marathas in order to avoid the Maratha raids. Sardeshmukhi was an additional levy of ten percent on those lands which the Marathas claimed hereditary rights.

Shivaji was a man of military genius and his army was well organized. The regular army consisted of about 30000 to 40000 cavalry supervised by havaildars. They were given fixed salaries. There were two divisions in the Maratha cavalry –

1. bargirs, equipped and paid by the state; and

2. silahdars, maintained by the nobles.

In the infantry, the Mavli foot soldiers played an important role. Shivaji also maintained a navy.

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