'Services' are things like education, trains, hospitals.

I don't want my taxes to pay for a desk that I have to go to to show my passport to someone so they can make me an ID card with the same information as the card that the man-with-the-gun-at-the-airport thought was OK enough to let me in to the country with, but the bank won't accept as strong enough proof of ID. Bureaucracy is not a service.