Who of the following shall cause every recommendation made by the Finance commission to be laid before each House of Parliament?

The Finance Commission is constitutionally required to submit its recommendations to the President of India, who is the addressee of those recommendations [2]. Under the constitutional scheme (Articles 270/280 set up the Commission and its functions) the President has the formal duty to place or cause to be laid every recommendation of the Commission before each House of Parliament; this ensures parliamentary scrutiny of the Commission’s proposals. Therefore the constitutional responsibility to “cause every recommendation… to be laid before each House of Parliament” rests with the President, making option 1 the correct choice.

Sources

1. [1] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 46: Finance Commission > FUNCTIONS > p. 431
2. [2] Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 25: DISTRIBUTION OF FINANCIAL POWERS > The States, similarly, have their receipts from- > p. 387