French controller general of finances during the last four years of the reign of King Louis XV. Terray instituted a series of financial reforms that, had they been maintained and extended by Louis XVI, might have prevented the fiscal crises that led to the outbreak of the French Revolution.

After entering the priesthood, Terray became (1736) an ecclesiastical counsellor in the high court of justice, the Parlement of Paris, where he specialized in financial matters. Louis XV's chancellor, René-Nicolas de Maupeou (Maupeou, René-Nicolas-Charles-Augustin de), secured for him the appointment as controller general in December 1769. A year later Terray helped bring about the downfall of the powerful minister of foreign affairs, Étienne-François, duc de Choiseul, by demonstrating to Louis XV that the government was too heavily in debt to support Choiseul's plans for war with Great Britain. Terray then began to stabilize the finances by repudiating part of the debt, suspending payments on the interest on government bonds, and levying forced loans. His measures aroused vigorous opposition from the nobles and wealthy bourgeoisie and even from the mass of the population. Terray and Maupeou both realized that any further attempts at fiscal reform would be blocked by the Parlements. Hence Maupeou took the offensive against the Parlements, depriving them of their political powers in a drastic overhaul of the judicial system (1771). Terray then proceeded with his reforms. He made the collection of the vingtième (5 percent tax on income) less arbitrary, reorganized assessment of the capitation (head tax) of Paris, and concluded more lucrative agreements with the farmers general, the financiers who purchased the right to collect indirect taxes. These measures dramatically increased the government's revenue.

Nevertheless, Terray left himself open to attack by restricting free trade of grain. The nobles unjustly accused him of making a Pact of Famine with Louis XV that would have enabled the King to profit from artificially high grain prices. Louis XV died in May 1774; his successor, Louis XVI, bowed to pressure from the nobles and dismissed Terray and Maupeou from office.