The Canaries have signed Nathan Redmond, Leroy Fer, Ricky van Wolfswinkel, Martin Olsson and Gary Hooper since finishing 11th last season.
The sums involved in those deals are a long way from when the club were struggling financially and playing in the third tier of English football but Hughton feels it is the nature of the beast in the money-driven top flight.
"By the standards of this club over the past few years, it [the transfer budget] has vastly improved," said Hughton, whose side start their Premier League campaign at home to Everton this weekend.
"But there are quite a few clubs you can look at who have spent considerably more than they would have done in the past.
"I think that is a consequence of staying in this league and the monetary benefits of staying in this league.
"If you want to improve and bring in better players, of course the prices are escalated at times and at times you have to go to those levels. We have strengthened but so has everybody else.
"It is very easy to go and look at other clubs' websites and see the players they have brought in and I think that is about this league and how tough this league is.
"Everyone feels they need to get themselves into the best possible position to start this campaign and try and be as strong as they can.
"We feel we have improved but you have to go and prove that on the football pitch."
Despite a raft of signings, Hughton remains in the market to continue adding to his squad right up until the transfer deadline, with another striker believed to be high on his shopping list.
Juventus forward Fabio Quagliarella has long been linked with a move to the Norfolk club and Galatasaray's Johan Elmander has recently been touted as a potential arrival, with Hughton admitting his business may not yet be finished.
"We are still working hard, the same as everybody else," he added. "We would like to finish the window with as strong a squad as possible.
"We are fortunate that we were able to do some of our work quite early in the window.
"It is difficult and as you get towards the end of the window there are invariably on a lot of occasions some surprises and some players who become available who weren't before and we have to be open for all of that."
Although big-name signings will bring added expectation to the stands at Carrow Road, former Birmingham boss Hughton is keen to utilise the players who have been at the club for a longer period of time.
"If I look at the core of the squad, it is still very good in terms of players who have developed at this club for a couple of seasons and in this country," he said.
"Our responsibility was to improve the squad but it is important that you have a core that has been there and done it and can integrate the new players in to the squad.
"I do have to add to that the fact we have lost a lot of players as well and if you look at us now and last season we probably had more players at his time last year."