Some local unions and public service employees are angered by Ontario's new austerity budget which imposes wage freezes in their sectors to slash the cash-strapped province's deficit.

The budget, released Tuesday, calls for a two-year wage freeze for about a million public sector workers, including teachers and doctors, as part of an effort to reduce spending by more than $17 billion over the next three years.

"We have increases in electricity, we have increases in requirements for infection control," said Dr. Merrilee Fullerton, of the Ottawa Academy of Medicine. "We have lots of technological increases. So we're bearing the burden of carrying those costs while our wages are frozen."

Hospital employees held a loud protest against the budget in front of the office of Ottawa West-Nepean MPP Bob Chiarelli, who is also the province's energy and infrastructure minister.

Shouting "Cuts don't heal! Cuts don't heal," the employees called for cuts to be made at the top of the hospital hierarchy, not on the front lines.

"There's no question that hospital CEO's, for example, are overcompensated," said Michael Hurley, from the Ontario Council of Health Unions.

The budget does include a pay-freeze extension for executives at hospitals, universities, colleges, and school boards for another two years.

Employees of the Ottawa Food Bank are also concerned about the budget especially after Premier Dalton McGuinty previously announced that the province would freeze social assistance rates.

"If it comes on the backs of people on marginalized budgets then that's an unfortunate thing because what are they going to sacrifice?" said Peter Tilley from the Ottawa Food Bank. "What are they going to give up if they don't have a small increase?"

But despite the massive wage freezes, Ottawa Mayor Jim Watson says the budget takes the steps needed to help the province's economy.

"The provincial government has to do what it thinks is right in terms of wage freezes," said Watson. "I'm pleased that they have not gone through an exercise of cutting projects that have already been approved."

With a report from CTV Ottawa's Catherine Lathem