* No additional borrowing at the moment - Chidambaram
* Most economists expect govt to overshoot its fiscal gap
* Govt expected by market to announce more borrowing late
(Updates to add details, quotes)
NEW DELHI, Dec 7 (Reuters) - India sought to spend an extra
308.4 billion rupees ($5.70 billion) in the current fiscal year
ending March 2013, as expected, to meet its upwardly revised
fiscal deficit estimate though it assured there will be no extra
However, market participants expect the fiscal deficit to
rise above the government's new target of 5.3 percent of GDP due
to sluggish revenue collection from its telecom auction and
divestments which could force the government to borrow more.
"The extra borrowing is not a function of only the increase
in spending, but also of revenues shaping up," said A. Prasanna,
economist at ICICI Securities Primary Dealership.
"There is still a possibility of additional borrowing,
whether it is through T-bills, or dated securities, we need to
see. The earliest we could know will be in the last week of
December when they announce the calendar for T-bills auction."
Most economists expect the government to end the fiscal year
with a fiscal deficit of 5.6-5.8 percent which could mean an
additional borrowing of 300-500 billion rupees.
The government has said it will borrow 5.7 trillion rupees
through federal government securities in 2012-13 ending March.
"We don't think at the moment there is a need to borrow
anything more than what has been indicated," India's Finance
Minister P. Chidambaram told reporters after seeking approval
from parliament for the additional spend.
India's fiscal deficit is the widest among many emerging
economies due to huge subsidy-based spending.
Ratings agency Fitch warned on Monday it could cut India's
sovereign rating if the government loosens fiscal policy in the
run-up to the election, due by 2014, or sees a more prolonged
slowdown in economic growth.
The fiscal deficit during the April-October
period rose to 3.68 trillion rupees ($67.5 billion), or 71.6
percent of the budgeted fiscal year 2012/13 target.
($1 = 54.0950 Indian rupees)
(Reporting by Manoj Kumar, additional reporting by Neha
Dasgupta; Writing by Suvashree Dey Choudhury; Editing by