Balance of payment deficit can be corrected by

Balance of payment deficit occurs when the total imports of a country exceeds the total exports, leading to a negative balance. This means that the country is spending more foreign exchange than it is earning. One way to correct this deficit is by export promotion measures, which include increasing exports, improving export quality, and finding new export markets. This would increase the foreign exchange earnings of the country and reduce the deficit. Another way is to decrease imports, by implementing import promotion measures, such as increasing import tariffs or imposing quotas. However, purchasing foreign assets or accumulating foreign reserves would only provide a temporary solution to the deficit, as these measures do not address the underlying issue of trade imbalance.