Because they don't want to provide user's data for free to everyone while hackers make efforts to get their hands on data like marriage licenses, driver licenses, and certificates of birth and IDs. Means if governments will use blockchain to store such data so no one can really tamper with it, that's fine, but the public nature of blockchain will make all the data stored on blockchain public, and thus anyone can access it.
Unless there are other ways to put a layer of security on such data but to be honest, I trust my government but will not if they are making my data publicly available to everyone. Recently, the FBR organization in my country got hacked and lost the data of how much taxes they collected and how much now, Such data they make public, but at the end of the evaluation, but if they make such data publicly available, like how much they made or from which person, each person can be allocated some special ID, which can keep them anonymous while they are making tx.
Such data if made public they won't be losing such profitable data. Now they can do corruption easily or can get away with anything.
There are ways to secure data from prying eyes (privacy). Ever heard about Zero Knowledge Proofs? They are a type of cryptographic technique that proves a transaction took place without the need to reveal the information pertaining to the sender and/or receiver. Privacy coins like Zcash and Zcoin already use such technique. And if governments are worried about security, they can simply launch a Layer-two network built on top of the main Bitcoin blockchain. It would gain all of Bitcoin's security benefits without the need to use BTC. The possibilities are endless.
It's just that governments are skeptical of crypto/Blockchain tech. The industry is not ready for primetime yet. Give it some time, and Blockchain will become an integral part of our daily life. Just you wait and see. See you in 10 years.
