Prime Minister Ivo Sanader, who will lead the Croatian government delegation at the session, will also meet Hungarian President Laszlo Solyom and representatives of the Croatian minority.
Bilateral relations between Zagreb and Budapest are extremely good, and the joint session of the two governments will contribute to the intensification of those relations and pave the way to concretisation of some projects, government spokesman Ratko Macek said on Wednesday.
Several bilateral agreements are expected to be signed tomorrow, including treaties on joint approach to development and regional policy, on cooperation in environment protection and in health and education.
The two countries are expected to sign a joint declaration on cooperation in the energy sector.
The Croatian Power Company (HEP) and the Hungarian power company should agree on the construction of transmission lines from the eastern Croatian town of Ernestinovo to Pecs, Hungary.
The two governments will also discuss possibilities for the construction a new natural gas pipeline trunk between the two countries.
The government's delegation will be accompanied by managers of leading Croatian companies, including INA, HEP, Plinacro, Podravka and Koncar.
The Budapest session will be the first session which the Croatian government holds outside Croatia and the second one which the Sanader cabinet will hold with the government of another country. In the summer of 2005, the Croatian and Slovene governments met on the northern Adriatic archipelago of Brijuni.