WASHINGTON – The number of people receiving welfare is declining, government statistics show, although the federal Health and Human Services Department statement indicated Maine’s welfare rolls increased over the past year.

HHS said Wednesday the number of individuals on welfare dropped more than 4 percent between March 2002 and March 2003, to about 5 million people. The number of families receiving welfare dropped about 2 percent, to a little more than 2 million.

Congress significantly overhauled the welfare system in 1996, allowing states to impose tough new rules on recipients. Since then, there has been about a 60 percent reduction in the number of individuals on welfare and almost a 54 percent reduction in the number of families getting assistance, the government said.

The Virgin Islands saw the biggest decrease, a 41 percent drop among individuals, followed by Illinois, with a 28 percent drop. Maine had the biggest increase to its welfare rolls, at 42 percent.

The reasons people stop receiving welfare vary. For example, they could have found jobs, married a wealthier partner or reached state-imposed limits on the amount of time they are eligible for welfare.

The government did not offer a breakdown Wednesday explaining the latest declines. Wade Horn, the assistant HHS secretary for children and families, said the agency should have a breakdown by year-end.

But Horn called it “very reasonable” to conclude that most people who got off welfare got jobs. He said that assumption is based on past studies.

Critics were skeptical, citing high unemployment numbers. The unemployment rate was 6.2 percent in July, a nine-year high. August’s rate will be released Friday.