It may, in the first instance, but there are two concerns that I would have following on that.
The first is that people who are most likely in need of state assistance tend to be those who are most likely to be marginalized. I can actually imagine a two-track system, where those who are wealthy, who really don't need to engage with the state very much, end up contributing very little information into the state and the state knows less about them, whereas those who are most in need or those who are most marginalized actually end up putting a lot of information into the state. Therefore, we almost have a state that's capable of large amounts of surveillance on the people who are maybe the least prepared to protect themselves.