The OP is soooo wrong in so many places, I don't even know it should be considered an earnest, though misguided, attempt to create an AU, or if this was made just for lulz.
Location: Isle just north of Russia
Population: 88,254,329 (2018, government estimate)
Sure, certainly places like Franz Josef Land or Severnaya Zemlya can easily support population larger than Germany's.
Independence (from the Soviet union): 1888.
Cool, mere 34 years before Soviet Union was even created.
GDP $ 10.25 trillion (20th)
Defence Budget: $ 2.87 trillion
Defence budget equalling ca. 28% of GDP? Well, there was a moment when USA spent even more - the 41% of GDP on defence, but that was during World War 2. What World War is waged by Corvus Isle? :>
(and current US defence spending is ca. 4% of GDP, which is among highest in the developed world)
Defence Budget: $ 2.87 trillion
-Air force: $ 97.6 billion
-Army: $ 10.00 billion
-Navy: $ 87.4 billion
-Research and development: $ 93 billion
Budgets of three services and R&D give total of 288 billion. Where goes the remaining 2.582 trillions of the defence budget?
Manpower (active personnel):
Air force:200.000
Army: 100.000
Navy: 300.000
(total 600.000)
Navy as large as army and air force combined? Well, I guess it's because in these areas they would need A LOT of personnel to man A LOT of icebreakers.
2. Colonization and technology
A group of scientists fled here in 1888 in order to flee the harshness of the czars, and seceded from Russia formally in 1891 to create Corvus Isle. They used their scientific knowledge to create Hi-tech equipment that they used to survive. They are now the most advanced civilization in the world and have developed many advantageous technologies, such as seawater extractors, which take metals and minerals from seawater in large quantities.
There was a book named "Rasskazy o russkom pervenstve", written, if I'm not wrong, in 1950. General message of it was that practically everything important that was ever invented, was already earlier invented in Russia. Most often by brilliant, self-taught representatives of the proletariat. When I read that part about "most advanced civilization" located "north of Russia" I just thought about that book...