The administration was highly decentralized and feudatory clans such as the Alupas, the Hoysalas, the Kakatiya, the Seuna, the southern Kalachuri and others were permitted to rule their self-directed provinces, paying a yearly honor to the Chalukya monarch. Excavated inscriptions record titles such as Mahapradhana (Chief minister), Sandhivigrahika, and Dharmadhikari (chief justice). Some positions such as Tadeyadandanayaka (commander of reserve army) were specialised in function while all ministerial positions included the role of Dandanayaka (commander), showing that cabinet members were trained as army commanders as well as in general administrative skills.

The kingdom was alienated into provinces such as Banavasi - 12000, Nolambavadi - 32000, Gangavadi - 96000, and each name counting the number of villages under its jurisdiction. The large provinces were divided into smaller provinces containing a lesser number of villages, as in Belavola-300. The big provinces were called Mandala and under them were Nadu further divided into Kampanas (groups of villages) and finally a Bada (village). A Mandala was under a member of the royal family, a trusted feudatory or a senior official. Tailapa II himself was in charge of Tardavadi province during the Rashtrakuta rule. Chiefs of Mandalas were transferable based on political developments. For example, an official named Bammanayya administered Banavasi-12000 under King Somesvara III but was later transferred to Halasige-12000. Women from the royal family also administered Nadus and Kampanas. Army commanders were titled Mahamandaleshwaras and those who headed a Nadu were entitled Nadugouvnda.

The Western Chalukyas minted punch-marked gold pagodas with Kannada and Nagari legends, which were large, thin gold coins with numerous varying punch marks on the obverse side. They usually carried multiple punches of symbols such as a stylised lion, Sri in Kannada, a spearhead, the king`s title, a lotus and others. Jayasimha II used the legend Sri Jaya, Somesvara I issued coins with Sri Tre lo ka malla, Somesvara II used Bhuvaneka malla, Lakshmideva`s coin carried Sri Lasha, and Jagadhekamalla II coinage had the legend Sri Jagade. The Alupas, a feudatory, minted coins with the Kannada and Nagari legend Sri Pandya Dhanamjaya. Lakkundi in Gadag district and Sudi in Dharwad district were the main mints (Tankhashaley). Their heaviest gold coin was Gadyanaka weighting 96 grains, Dramma weighted 65 grains, Kalanju 48 grains, Kasu 15 grains, Manjadi 2.5 grains, Akkam 1.25 grains and Pana 9.6 grain.