Georgia's net tax collections for July increased 7.4 percent compared to the same month in 2011, Gov. Nathan Deal's office said Thursday.

The first month of the new fiscal year showed deposits totaling $1.32 billion.

Despite the revenue spike in July, Deal recently ordered state agencies to find $553 million in budget reductions through June 2014.

Individual income tax collections in July were up 6.3 percent to $698 million as individual withholding payments and assessment payments both rose even as refunds from the state increased nearly 23 percent.

Sales and use taxes saw similar gains, and they increased 3.1 percent to $460.3 million.

Corporate income taxes, meanwhile, increased $42 million, or 174.2 percent, as business refunds from the state fell 73.4 percent and estimated payments rose 68.2 percent.

Of the new cuts the governor has ordered, nearly half would come from higher education and the Department of Community Health, which handles Medicaid and PeachCare. Some agencies will consider layoffs.

It is the fifth consecutive year the governor's Office of Planning and Budget has ordered cuts and reflects continued weakness in the state's economy and concern that it won't improve dramatically before 2014. This year's requested cuts are larger than last year's.

State tax collections — most of which come from income and sales taxes — jumped during the second half of last year but slowed as the economy struggled during the first half of 2012. Collections increased 4.8 percent for the fiscal year that ended June 30, just enough to cover the state's budget.

Deal signed a $19.3 billion state spending plan for fiscal 2013 in May.

"The governor's budget projections assume 5.3 percent revenue growth for the year," Deal spokesman Brian Robinson said. "We predict ups and downs throughout the year."