Virginia Gov. Bob McDonnell, hugs his wife, Maureen, as his daughter Janine, looks on during his inauguration at the Capitol in Richmond, Va. (Steve Helber/AP)

RICHMOND -- Republican Bob McDonnell on Saturday began his tenure as Virginia 71st governor, inheriting a dire fiscal mess, a divided legislature and a struggling economy along with the keys to the Executive Mansion.

McDonnell, the first Republican to hold the position in nearly a decade, took the oath of office on the steps of the Capitol against a backdrop of state and national leaders, clergy and his family. In a speech laden with military history, he gave a nod to the stark times ahead and emphasized a small-government message frequently delivered on the campaign trial.

"This austerity won't be easy, but it is necessary," McDonnell said. "The circumstances of our time demand that we reconsider and restore the proper and efficient role of government. Without reform the continued growth of government can threaten our very prosperity."

As Virginia's attorney general, McDonnell had an early lock on the Republican gubernatorial nomination, for which he ran unopposed last year. The general election pitted him against rural state senator Creigh Deeds, an at-times bitter contest that drew national attention and ended in a lopsided 17-point victory for McDonnell. The top of the GOP ticket led a clean sweep for his party, which also widened its majority in the House of Delegates and retained its hold on the lieutenant governor and attorney general positions.

The win -- which stopped years of Democratic ascendancy in the Old Dominion -- instantly elevated McDonnell as a national GOP figure. He is expected to use his perch as governor to oppose federal initiatives from Washington on health care and the environment. In his speech, he warned that no mandate from Congress "should undermine the central principle of federalism."