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We study the expansion dynamics of harmonically trapped bosons in a two-dimensional lattice within the extended Bose-Hubbard model. We evaluate the dynamics of the system following a sudden removal of the confining potential, starting with a cloud mostly in n = 1 Mott state. We show that the nearest neighbour interactions have a strong influence on the dynamics of ultracold bosons on an optical lattice. Also we conclude that validity of the widely used contact potential approximation is questionable in the presence of Feschbach resonances.