Tell your boss to stick his project where the sun doesn't shine, You're going to play Galciv. That will keep your spirits up.!!!
A deficit lowers morale. It's ok for 1 or 2 turns but any longer than that and it has an effect. I will adjust that gov't spending slider to bare minimum (only enough to maintain things) before the auto kick in to get it back up. Also, Taxes over 50% start to knock morale exponentially. 35-49 is a good range. I go over 50 for the first few turns but that's about it.
Also, Get starbases on the yellow morale boosting resources (IMO they are among the top 3 in importance. Also get those morale wonders. They help. As does choosing populist party.
As long as your taxes are in a good range, don't lower them. It only gives you more people and you're right back where you started in 10 turns or so and they will react negatively to any tax increase. So it becomes a never ending cycle of lowering taxes untill you are broke.
The solution is the boosters. Build them early, build them often. But make sure you build the econ boosters in there too to pay for them.
Hope that helps. Oh and lastly, Join G.R.O.S.S. and show this game and the aliens you mean business.