Why are these costs so high? It just feels wrong to be the supreme tyrant of a huge empire that's got legions of soldiers decked with plate and wielding magical swords...and you can't even afford to equip yourself with a lousy scimitar and light plate. Why can't you just have one of your smiths craft you what you need?
Suggestion: Make all items that you have tech for purchasable by spending the same amount of gold/materials/metal/etc that you have to pay to equip your soldiers with it. Perhaps also have items of one tech higher than you have available purchasable with gold, and still mostly overpriced. Or tie it in with the adventuring tech tree to be able to purchase better items, without being able to equip your soldiers with it. This could either be at the normal item shop, or in special shops spread around, similar to inns.