It's definitely a lot closer yes, as indicated by the 20+ point gap last year...Lot closer. If Barca and Real finish 1st and 2nd, doesn't mean one is Bayern and other is Dortmund level.
Liverpool are favourites to finish second but also favourites among those who could potentially upset City. And they are so due to their lavish spending as opposed to the likes of Dortmund.
And there's no point in comparing today's spending (especially by an English team) to that of six years ago.