Real Madrid has the budget but they ran out of their main options, Mbappe mainly and Haaland also.
You are right. Real Madrid already failed to sign their main targets, Mbappe & Haaland. Man City signed Haaland because Haaland's father ever played as a Man City player, City got an advantage of his father's history. While Mbappe decided to stay because Mbappe wants to play more in France and was interested in the big money offered by PSG management. Honestly, Real Madrid is very unlucky, they failed because of personal reasons that influenced those players' decisions. The latest news, Real Madrid wants to sign Lewandowski from Bayern. This may be the final target and probably fails also because Bayern doesn't want to lose their main striker. Too bad transfer season for Real madrid...
Real Madrid president, Florentino Perez is totally disappointed that the team failed to sign both young lads this season. First they abandoned Erling Haaland deal from Dortmund because all their main focus was on the Frenchman, Kylian Mbappe who later turn them down in the last minute of the deal. One thing is that the Los Blancos didn't send good scouts to convince these players to join the team, Erling Haaland was convinced by his father to join city while Mbappe was persuaded to extend his contract with the team, and he couldn't resist because of the gigantic deal PSG offered him.