ATLANTA -- During the first month of the state’s fiscal year, tax collections rose 7.3 percent above the same month last year, according to figures Gov. Nathan Deal’s office released Tuesday.

The $84 million increase brought to $1.2 billion in tax collections for July.

“The first month of this fiscal year has continued the trend of year-on-year comparison growth,” said Deal in a statement. “I am encouraged by the results but will watch Georgia’s revenue numbers closely to ensure we maintain a conservative state budget.”

The governor is overseeing a reduced state budget, but the added funds will likely wind up in the state’s reserves to cushion future shortfalls rather than restoring cuts.

He has instructed state all agencies except corrections and education to trim 2 percent from their requests for next year’s budget.

With the stock market dropping hundreds of points every day recently, the federal debt downgraded and speculation of default by two of Europe’s largest economies -- Italy and Spain -- Deal tempered the good news of July’s tax collections.

“There’s much uncertainty in the market at the moment, and I’m committed to preparing our state government for whatever the global economy throws our way,” he said.

State agencies are drafting their budget proposals now for submission to the governor’s office Sept. 1 for his review before transmittal to the General Assembly in January.