The minority Liberal government may have passed its first major test with a successful budget vote Tuesday, but Premier Dalton McGuinty is already looking to his next big challenges: contract negotiations with doctors and with teachers.

Speaking to CTV Queen's Park correspondent Paul Bliss in an exclusive interview, the premier took a hard-line stance towards upcoming negotiations with Ontario teachers, whose contract expires in August.

He agreed that things could get ugly, but said he will work to find a solution.

"I am optimistic, by inclination and responsibility," McGuinty said. "I'm just going to have to find a way."

As for doctors, whose ongoing contract negotiations with the province stalled Tuesday, the premier said they will have no choice but to accept a pay freeze.

"Yep, they are," McGuinty said. "Just as teachers are and all of our public-sector workers."

Choosing increased wages will result in decreased services, the premier said.

"We've got to make some difficult choices," McGuinty said. "We've got a choice to put money into pay, or to continue to put money into full-day kindergarten and to make sure we continue to have small classes."

Getting legislature through the summer months without the threat of an election is likely, McGuinty said, but he's already looking towards potentially difficult bills to do with labour negotiations in the fall.

McGuinty said he hopes the collective desire to make government work will keep the minority government standing.

"None of the parties, and certainly the public, are not interested in an election," McGuinty said. "And I can tell you that my strongest sense is that what families are looking for, what businesses are insisting upon, and what the international investment community craves, is stability, predictability, certainty."

McGuinty also defended an additional two per cent tax for wealthy Ontarians included in the budget.

The tax, which will apply to those who make more than $500,000 per year, was one of the NDP's key demands in order to prevent the government from falling during the budget vote.

"It's an extraordinary measure, introduced at an extraordinary time," McGuinty said of the new tax.

But he said the Liberals wouldn't be giving the NDP any more concessions.

"This is it. We've come to terms," McGuinty said. "And we've done it in a way that, I think, accomplishes some shared objectives."

McGuinty said Monday that the additional tax would be used to pay down the deficit faster.

With files from CTV Toronto's Paul Bliss