How did Henry IV reduce France’s national debt?

Henry IV reduced France’s national debt primarily through the efforts of his trusted minister, Maximilien de Béthune, duc de Sully, who became the superintendent of finances. Rather than implementing sweeping reforms, Sully focused on making the existing financial system more efficient.12

His strategies included:

• Enforcing Debt Repayment: Sully conducted provincial tours to enforce the collection of royal debts and curb abuses, such as provincial governors raising money on their own authority.12
• Taxation Adjustments: He shifted the emphasis from direct to indirect taxation and introduced the paulette in 1604. This tax allowed officeholders to ensure the heritability of their positions by paying an annual fee, providing the state with a more predictable revenue stream.12
• Administrative Oversight: Sully provided the first real statements of government finances in years, abolished superfluous public offices, and built both an annual surplus and substantial reserves.12

These measures, combined with the domestic and foreign stability following the Peace of Vervins, allowed the monarchy to restore its financial position.1