Reforms:

Ranjit Singh changed and improved the training and organisation of his army. He reorganised responsibility and set performance standards in logistical efficiency in troop deployment, manoeuvre, and marksmanship. He reformed the staffing to emphasise steady fire over cavalry and guerrilla warfare, improved the equipment and methods of war. The military system of Ranjit Singh combined the best of both old and new ideas. He strengthened the infantry and the artillery. He paid the members of the standing army from treasury, instead of the Mughal method of paying an army with local feudal levies.

While Ranjit Singh introduced reforms in terms of training and equipment of his military, he failed to reform the old Jagirs (Ijra) system of Mughal middlemen. The Jagirs system of state revenue collection involved certain individuals with political connections or inheritance promising a tribute (nazarana) to the ruler and thereby gaining administrative control over certain villages, with the right to force collect customs, excise and land tax at inconsistent and subjective rates from the peasants and merchants; they would keep a part of collected revenue and deliver the promised tribute value to the state. These Jagirs maintained independent armed militia to extort taxes from the peasants and merchants, and the militia prone to violence. This system of inconsistent taxation with arbitrary extortion by militia, continued the Mughal tradition of ill treatment of peasants and merchants throughout the Sikh Empire, and is evidenced by the complaints filed to Ranjit Singh by East India Company officials attempting to trade within different parts of the Sikh Empire.

According to historical records, states Sunit Singh, Ranjit Singh's reforms focused on military that would allow new conquests, but not towards taxation system to end abuse, nor about introducing uniform laws in his state or improving internal trade and empowering the peasants and merchants. This failure to reform the Jagirs-based taxation system and economy, in part led to a succession power struggle and a series of threats, internal divisions among Sikhs, major assassinations and coups in the Sikh Empire in the years immediately after the death of Ranjit Singh;[118] an easy annexation of the remains of the Sikh Empire into British India followed, with the colonial officials offering the Jagirs better terms and the right to keep the system intact.