This is a rush transcript from "On the Record," February 14, 2012. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: Right now, Congressman Paul Ryan, the House Budget committee chair, with very pointed words for President Obama's $3.8 trillion budget. He calls it a gimmick and adds that it is a recipe for debt crisis. But he's not just slinging words. Congressman Paul Ryan also has a plan. Congressman Ryan joins us. Good evening, sir.

REP. PAUL RYAN, R-WIS.: Hey, good to be back with you.

VAN SUSTEREN: OK, first of all, let's start with the president's budget that he proposed. What's wrong with it, in your opinion?

RYAN: What's wrong with it most of all is what it doesn't do. It doesn't fix our problem. He doesn't even pretend to actually fix our fiscal problem. So instead of having sort of an American built to last, I would call it American drowning in debt.

And then when you strip away all the accounting gimmicks and all the counting tricks -- take all that way, it doesn't come close to even doing what he says it does. He says it reduces the deficit by $4 trillion. Doesn't do any of that when you strip away all the budget gimmicks.

It increases spending net over $1.5 trillion, increases taxes by $1.9 trillion, and has a measly $400 billion of deficit reduction over an entire 10-year period.

VAN SUSTEREN: Well, let me ask you about...

RYAN: So he's proposing to spend $47 trillion over 10 years. And so instead of increasing our debt by 78 percent, which is what the status quo is doing, he's increasing debt by 76 percent, $11 trillion added to our national debt under of this budget.

VAN SUSTEREN: All right, explain -- explain something to me because the president submits a budget and we get projections for fiscal year 2013.

RYAN: That's right.

VAN SUSTEREN: And then we get a set of numbers which shows what's going to happen over the next nine years after that. And that, of course, is not taking into account that next year, another budget's going to be set with another direction, whether up or down, whether he's the president or another one's the president or whatever. And so this is almost sort of the -- sort of the stream of numbers we see out in the future are completely phony.

RYAN: Well, they're projections. And you have to project where government is going in the future so you set your tax policies accordingly, you can set your spending policies. You can tell whether Medicare is going bankrupt, for example, which it is in 2021, according to CBO, or 2024, according to Medicare.

So the future does matter...

VAN SUSTEREN: Well, it does matter, but...

RYAN: ... but it's also the trajectory of the policies. So it shows the path the president has put us on based on his policies that he's calling for. And since 61 percent of the budget is on autopilot, that just shows you how this debt is just going on autopilot up.

And the President's literally doing nothing about it. He's actually chasing higher spending with higher taxes. And he's doing nothing to address the drivers of our debt. We will have a debt crisis in this country. That's going to happen. That's -- and the frustrating, disappointing thing about this, Greta, is he knows this. He knows we have a debt crisis in this country.

And what's troubling to those of us who care so much about this country, about our economy, about people not being lied to with empty promises of benefits, about people living on the safety net, about people counting on a Medicare and Social Security, if we don't do something to fix these programs, then those people are going to hurt the first.

VAN SUSTEREN: Well, the whole system -- and not to be disrespectful to the members of both sides of the aisle and the president, is phony to begin with. I mean, even the fact that Senator Harry Reid has said that he has no intention of having a vote on the president's budget means that all these books that are put together -- and I've got stacks and stacks of books that...

(CROSSTALK)

VAN SUSTEREN: I've got four giant books -- all this work that the administration did putting together this budget, making these books and making these projections and making these numbers, is just a silly exercise because it's never going to see the light of day because Senator Harry Reid has said that there's going to be no vote on it. And he -- and it's -- it's obscene!

RYAN: So the law says the president has to produce this. The budget law says the president, by actually a week ago yesterday, must produce a budget.

VAN SUSTEREN: Well, why doesn't he get together in the -- this isn't really your problem. It's the other party. Why doesn't he get together with his colleague, a Democrat, in the United States Senate and say, Let's have a vote up or down on...

RYAN: That's the second point I was going to make.

VAN SUSTEREN: OK.

RYAN: The law also says the House must produce a budget and the Senate must produce a budget by April 15th. Now, we passed our budget last year on time. We're going pass a budget this year again on time because you -- A, we think it's our moral obligation, but it's also our legal obligation. The Senate didn't pass a budget in 2010. The Senate didn't pass a budget in 2011, and now...

VAN SUSTEREN: And there's no recourse. No recourse...

RYAN: And there's no recourse...

(CROSSTALK)

RYAN: They're just ignoring the law, and Senator Reid is now saying he will not bring up a budget. He won't pass a budget this year, as well.

VAN SUSTEREN: Why not?

RYAN: Because I don't think they want to show you and the rest of the country just the kind of tax increases they have in store for the kind of government they've built. I don't think they're willing to show the country literally how much government will really cost the country because they are unwilling to cut spending. The president's giving us a budget that increases spending in a debt crisis!

VAN SUSTEREN: Well, at least I'll give him credit for at least coming up with something that -- I mean, at least Senator Harry Reid is actually stopping it!

RYAN: Yes, and...

VAN SUSTEREN: I mean, I...

(CROSSTALK)

VAN SUSTEREN: ... proposal. He put something on the table.

RYAN: Four years of trillion-dollar deficits. We've never seen that before. But he did give us a proposal.

VAN SUSTEREN: How much does this cost, do you think, this study?