Preheat oven to 375 degrees F. Line a baking sheet with foil; coat with cooking spray.
Combine 1/2 can tomato paste, egg, 1 tsp. each basil and oregano, onion powder, garlic powder and pepper in a large bowl. Stir in bread crumbs, Parmesan and raisins.
Mix in turkey with hands or a large spoon until mixture is combined well. Shape into 16 meatballs, about 1 1/2-inches in diameter. Bake 20 minutes or until browned and cooked through (165 degrees F internal temperature).
Meanwhile, stir together remaining tomato paste, diced tomatoes, 1 tsp. each oregano and basil, sugar and salt in a large saucepan. Bring to a boil; reduce heat and simmer, uncovered, 10 minutes. Add baked meatballs to sauce and simmer 5 minutes for flavors to blend. Serve meatballs and sauce over pasta with Parmesan cheese, if desired.