They deserve credit, they have done really well to assemble that squad for those fees.
But there's something important here: the relation between money and time to assemble the squad. Liverpool have been very patient in their approach, because they, unlike City/Pep, are not under pressure to compete for the biggest trophies every single season. Klopp is in his 7th season and has won only 2 domestic trophies so far.
City/Pep don't need to be patient in the market, they go out and buy the players needed to compete at the highest level. Therefore, the players cost more money.
Klopp needed 3-4 years to compete for the title. If you give to Pep 4 years to build a top squad with fewer money, he can do it. But at City you don't need to be patient and wait 4 years to compete. You buy the necesary players now, not over 4 years. But the pressure at City and for Pep is much, much bigger than at Liverpool and for Klopp. Klopp/Liverpool always have, or resort to, the excuse they compete with a 'state funded club'.